Cake Box - a creamy prospect?
Shares in the egg-free cake baking retail franchise group Cake Box Holdings are looking 'too cheap' says broker Liberum Capital.
There is a growing queue for new stores - which is now some 47 versus only 24 pre-Covid-19.
Furthermore the company's cash generation is remaining strong, making a special dividend very affordable.
Analyst Wayne Brown retained his ‘buy’ recommendation and target price of 265p on the shares, which rose 6.8% to 176.2p yesterday.
Brown noted that online sales were up 81%.
‘The strong trading momentum since reopening of stores in mid-May has continued in September, with like-for-like sales for the last 20 weeks of the first half of 2021 up 12.1%.’