Citi has upgraded Accent Group to ‘Buy’ and has increased the price target for the apparel retailer, following the company’s optimistic annual results.

Accent Group’s shares saw a significant surge of up to 20.3%, reaching A$2.220.

This is the highest intraday gain recorded since April 2020.

Accent Group is currently trading 19.2% higher at A$2.20, marking its highest level since May 23.

The company has emerged as the top gainer in the ASX All Ordinaries index.

The upgrade to ‘Buy’ from the previous ‘Neutral’ rating, along with an increase in the price target to A$2.12 from A$1.80 are significant jumps.

On Thursday, after the market hours, Accent Group reported a FY net profit after tax of A$88.7 million, compared with A$31.5 million in the previous year.

Their FY total sales showed a 24% increase from the previous year, totaling A$1.57 billion.

Citi states that sales trends are better than expected.

The firm also indicated that FY24 and FY25 NPAT estimates are up by 8% and 18%, respectively.

Among 10 analysts examining the stock, one rated it ‘Buy’, seven kept it at ‘Hold’, and two rated it ‘Sell’.

The median price target according to Refinitiv data is A$1.95.

As of the last close, the stock saw a 16.1% increase this year.

Accent Group is an apparel retailer known for its trend-oriented fashion and sturdy financial performance.