Next plc Kept at Buy as Berenberg Notes 'Broadly In-line' Fiscal H1, FY27 Guidance Upgrade

06:20 AM EDT, 09/18/2026 (MT Newswires) -- Berenberg affirmed its investment opinion on Next plc (NXT.L) after the British retailer reported "broadly in-line" fiscal first-half results and upgraded fiscal 2027 outlook. The research firm said Friday it updated its estimates after Next raised its 2027 pretax profit guidance to 1.26 billion pounds sterling from 1.24 billion pounds previously, noting the increase was the company's 17th upgrade in four years, excluding profit beats. Analysts also noted that sales outlook was adjusted across regions, with Next raising its international sales guidance by 40 million pounds while lowering the UK outlook by 18 million pounds. According to Berenberg, this shift reflects an "incrementally more cautious" view of the domestic market, where rising inflation, mortgage cost pressure and labor market weakness are dampening consumer spending. "In the analyst meeting Q&A, the CEO also mentioned some softer weeks of trading recently. This is unsurprising, in our view, given the warmer weather compared to the past two years in September to date. Next is relatively defensive and retains its perennial attractions of margin quality, cash generation and management focus. We continue to see growth potential for International online sales, the owned non-Next brand portfolio and profits from equity stakes in a long list of UK brands, many of which Next supports with online logistics provision and other services," the note said. Against this backdrop, Berenberg reiterated Next's buy rating and price target of 187 pounds.