Berenberg Bullish on Next plc Amid Expectations of Continued Shareholder Returns; Price Target Up

11:03 AM EST, 01/07/2026 (MT Newswires) -- Berenberg remains upbeat on Next plc (NXT.L) amid expectations of continued surplus cash returns to shareholders via share buybacks or special dividends, highlighting that the British retail group has consistently done so over the past 25 years. Analysts raised their price target to 180 pounds sterling from 178 pounds on Wednesday, while reiterating their buy recommendation on the stock. "We remain buyers of Next despite a likely deceleration in the sales growth rate from here. We forecast around 4.5% sales growth next year (FY 2027E, to January 2027), consistent with company guidance, compared to the near-11% achieved in the current year to date. We do see possible upside risk to profit guidance in the year ahead, particularly to Online International division growth guidance of 16.5%," the research firm said. "[We] continue to believe Next offers an attractive combination of moderate growth potential, margin and management quality, as well as consistent surplus cash returns." EPS forecasts for fiscal years 2026 through 2028 were increased, while projected sales over the three-year period were lowered. Profit estimates were also bumped up by 1% for all years following the group's recent trading update for the fiscal fourth quarter.