Peel Hunt starts coverage of Moss Bross

Analysts at Peel Hunt have started their coverage on

menswear chain Moss Bros (MOSB.L), with an initial target price of 50p.

Peel Hunt was appointed as sole Corporate Broker and Financial Adviser to Moss Bros Group PLC, the British men suit specialist, in early January. Moss Bros Group PLC has a market cap of c. £33m and is on the Main Market and sits within the retail sector.

In a note to investors recently released, John Stevenson, analyst at Peel Hunt, has initiated coverage of with a 'buy' recommendation as he believes it is poised to return to profitability this year.

According to StockMarketWire, Stevenson cited the group's strong balance sheet, organic growth possibilities and its untapped customer database from its hire channel as factors in its favor.  “Moss has the opportunity to leverage the scale of the hire customer database,'” Stevenson said, as published by CityWire on Monday.

The current management inherited a “broken business”, Stevenson said, with excess costs and poor ranges. However, now that the Hugo Boss franchise has been sold the future looks bright for the group: “With significant opportunities against a weak consumer backdrop, we commence coverage with a buy recommendation,” he said.

Shares in Moss Bros closed at 34.75p on Friday, unchanged on the previous day.