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Top broker tips Accent (ASX:AX1) share price to rise 33%

The Accent Group Ltd (ASX: AX1) share price has been a disappointing performer over the last few weeks. Since this…
The post Top broker tips Accent (ASX:AX1) share price to rise 33% appeared first on The Motley Fool Australia. –

The Accent Group Ltd (ASX: AX1) share price has been a disappointing performer over the last few weeks.

Since this time in August, the footwear-focused retailer’s shares have pulled back by 22%.

This means the Accent share price has wiped out all its 2021 gains and more.

Is the weakness in the Accent share price a buying opportunity?

One leading broker that believes the weakness in the Accent share price is a buying opportunity is Bell Potter.

According to a recent note, the broker has a buy rating and $2.90 price target on the company’s shares.

Based on the latest Accent share price of $2.18, this implies potential upside of 33% over the next 12 months before dividends.

And if you include the 9 cents per share fully franked dividend Bell Potter is forecasting in FY 2022, this potential return stretches to over 37%.

What did Bell Potter say?

Although the broker has reduced its forecasts (and price target) to reflect the negative impact of lockdowns, it remains positive on Accent. This is due to its belief that the underlying fundamentals of the business remain strong and attractive.

Bell Potter commented: “We have cut our 1H22 estimates to reflect lockdown impacts. The net effect is our FY22 EPS falls by -21%, although there is no material change in FY23/FY24. Including model roll-forward, our 12-month price target reduces to $2.90 (previously $3.30). Notwithstanding the material near-term lockdown impacts, the underlying fundamentals of the business remain strong and attractive. We retain our Buy rating on the stock.”

Despite the recent weakness in the Accent share price, it has still smashed the market on a 12-month basis. During this time the company’s shares have risen 37%. This compares to a 22% gain by the S&P/ASX 200 Index (ASX: XJO).

Pleasingly, Bell Potter appears to believe it can do the same again over the next 12 months.

The post Top broker tips Accent (ASX:AX1) share price to rise 33% appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bell Potter right now?

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More reading

2 quality ASX dividend shares rated as buys this month

2 ASX dividend shares that just delivered even bigger payouts

The Accent (ASX:AX1) dividend has lifted by 22%
2 buy-rated ASX dividend shares

Accent (ASX:AX1) share price slides despite strong sales growth

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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