S&P/ASX All Ordinaries Index (ASX: XAO) stock Accent Group Ltd (ASX: AX1) might not be on every investor's radar, but it is catching the eye of analysts for all the right reasons.
Shares in the lifestyle footwear and apparel business are trading at $2.21 per share on Monday at the time of writing, up nearly 15% this year to date.
After this run, is the ASX All Ords stock still an attractive play? Let's see what the experts think.
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ASX All Ords stock in favour
Accent Group is rated favourably by analysts, with consensus rating it a moderate buy according to CommSec.
Bell Potter is one firm that is bullish on the ASX All Ords stock, noting that its ability to capture market share and deliver consistent earnings makes it "an attractive investment." Analyst Christopher Watt told The Bull:
The company holds a leading position in the footwear retail sector. The company has grown from 524 stores in fiscal year 2020 to 895 stores in fiscal year 2024.
It has 32 websites and 10.2 million contactable customers. The company is resilient and offers a solid growth trajectory. Its ability to capture market share and deliver consistent earnings makes it an attractive investment.
According to my colleague James, Bell Potter has a buy rating on the stock with a price target of $2.50.
This represents an upside potential of 13% at the time of writing. But this excludes any dividends in the return.
The broker also forecasts fully franked dividends per share of 13.9 cents in FY25 and 15.8 cents in FY26.
Based on the current share price of $2.21, these forecasts translate into attractive yields of 6.2% and 7%, respectively.
Factoring this into the equation, if Bell Potter's targets are right, this implies a total shareholder return of 19.2% over the next twelve months for the ASX All Ords stock.
Sector outlook also gets high marks
Brokers are also constructive on the broader retail sector, putting the ASX All Ords stock in focus. Morgans also rates Accent Group a buy with a price target of $2.40 on its shares.
The broker thought the company's FY24 performance was sound, particularly considering the tough trading conditions.
Morgans expects a rebound in the current year. Despite the fact that profits were down "due to sales growth tracking below the rate of cost inflation", it says there are several tailwinds forming.
One is the "improving retail and wholesale sales trajectory", whilst points like lowering inflation, and "the elimination of some of the losses in Glue" could drive Accent's profits higher in FY25.
The broker also forecasts fully franked dividends per share of 14 cents and 15 cents in FY25 and FY26, respectively.
ASX All Ords stock takeaway
Accent Group is one ASX All Ords stock currently in the favour of top brokers. Analysts are looking to both capital gains and dividends as part of the investment case.
In the last 12 months, the sock is up 14%.
