The Accent Group Ltd (ASX: AX1) share price has stepped firmly into the green on Wednesday.
Accent shares are now exchanging hands at $2.31 apiece, which is a 12.44% gain from the open.
Let’s uncover what’s been driving the Accent share price today.
What’s up with the Accent share price today?
There has been no market sensitive information released by the company today. However, Accent shares have been on an extended run into the red over the last few weeks, much to the dismay of investors.
So today’s gains are a welcomed reversal of the downward pressures Accent shareholders have faced since the share prices’ previous high of $2.80 on August 10.
One factor that could help why the Accent share price is soaring today, is an analyst note out of leading broker Morgan Stanley.
The broker upgraded its price target by 8.3% to $2.60 per share earlier and also upgraded its recommendation to overweight from equal weight.
Analysts at Morgan Stanley are confident the company can continue unlocking value for shareholders in the periods to come, saying “(It) sees upside to Accent’s FY22 store target of at least 65 stores, given these stores are mostly signed”.
The broker went on to say that “Accent has a track record in beating targets”, which could weigh in positively.
It also thinks Accent shares are a buy given the forecasted strengths in the broader activewear/lifestyle sector, which could deliver outsized growth in years to come.
What are other brokers saying?
Several other brokers have also upgraded their recommendations on Accent’s shares in the last few weeks, notably after the company’s FY21 earnings report last month.
In a recent change of heart, broker Citi upgraded to a neutral rating on Accent shares, but still cut its assigned price target to $2.14. A month earlier Citi had a sell recommendation to investors on the company’s shares.
Australian broker Bell Potter Securities also has a buy rating and $2.90 price target on the Accent share price, citing “strong underlying fundamentals of the business (that) remain strong and attractive” in its reasoning.
The sum of these analyst equity reports appears to be weighing in on the Accent share price today, particularly the note out of Morgan Stanley’s equity research team today.
Accent share price snapshot
The Accent share price has struggled this year to date and finds itself around 0.5% in the red since January 1. In the last month alone, Accent’s share price has slipped a further 13.5% into the red.
Despite this, Accent shares have climbed 51% over the last 12 months, and are up 4% in the last week, thanks to today’s results. This is ahead of the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the past year.