Cantor highlights the volatile quarter experienced by Carpetright

Carpetright (HOLD) – A Volatile Quarter
CPR LN (196p, TP 210p), Market Cap: £132.8m
The Q3 update highlighted volatile trading in the UK and a solid performance in Europe. We have reduced our FY’17 PBT forecast by 6% to £15.0m having taken a conservative stance on the Q4 outturn. If the run rate seen in recent weeks continues then there is upside potential to forecasts as comparatives ease over the final quarter. That said the later timing of Easter this year could act as a meaningful drag if there is warm weather over the long weekend. There remains much to play for over the final quarter. The stock has de-rated significantly over the last 12 months and now trades on a cal’17 PER of 10.9x. We reiterate our HOLD recommendation and our TP 210p (11.7x cal’17).