Citi has raised its position on Accent Group to a ‘buy’ assessment and increased its price target (PT) for the clothing retailer, driven by strong annual results.

The entity shifted its status from ‘neutral,’ boosting its PT to A$2.12 from A$1.80.

Reporting an increase in yearly net profits after taxes, Accent displayed figures of A$88.7 million, compared to the preceding year’s A$31.5 million.

Total sales for the fiscal year reached A$1.57 billion, marking a 24% increase from the year prior.

Citi notes that sales trends surpass expectations and comparisons do not forecast greater challenges for the first half of FY24.

The brokerage has also increased its NPAT estimates for FY24 and FY25 by 8% and 18% respectively.

A Refinitiv data study reveals that of 10 analysts, 1 rates the stock as ‘buy’, 7 rate it ‘hold’ and 2 as ‘sell’, with a median PT of A$1.95.

This year, the company’s stock has seen a 16.1% increase as of the most recent closure.

Accent Group is a leading clothing retailer in Australia.