RBC Ups Price Target, EPS Forecasts for Next plc on International Online Growth, Improved Cost Outlook

04:43 AM EDT, 07/13/2026 (MT Newswires) -- RBC Capital Markets raised its price target and EPS estimates for Next plc (NXT.L), citing the British retailer's accelerating global online sales growth and brighter outlook on expenses. "We see potential for NEXT to continue its gradual rerating, driven by strong international momentum and a broader appreciation of its international growth prospects. This should include Rest of World including the US, where we see potential for NEXT to grow quickly off a low base. We have nudged up our EPS forecasts and PT from GBP160 to GBP163, with a bull case of GBP177/share. Reiterate Outperform," analysts said Monday in a European retailing note. The research firm projects Next's international business will expand to more than 40% of its sales in 10 years, compared with 25% currently. RBC noted that the company's cost pressures eased due to lower oil prices and fading UK labor headwinds. With "more moderate" price hikes anticipated for Spring 2027, the research firm believes the retailer can lift its pretax profit outlook again during its fiscal second-quarter update on Aug. 5, 2026. "Currently NEXT is scheduled to buy back just over GBP500mn of shares this year, but the current share price of c.GBP145 is well ahead of its last stated share price limit of GBP132, so it may switch to a special dividend or capital return with its remaining cash. NEXT is trading at 16.5x CY27e P/E, high for a UK retailer but very low compared to international retailers. As NEXT continues to execute well and its international exposure rises, we see potential for a further rerating," the note said.