Play the improving trends at Superdry brand-owner SuperGroup (SGP) and snap up stock ahead of a forthcoming (7 Feb) third-quarter update. This missive could trigger upgrades as the Cheltenham-based outfit highlights a boost to sales of its jackets, hoods and knitwear driven by the incoming cold snap.

An upbeat second-quarter update (8 Nov) demonstrated both encouraging organic growth and the positive impact a strengthened management team has had upon the business. Total UK retail sales rose 32.2% to £52.2 million in the period to 28 October, while wholesale revenues skipped 9.2% higher to £46.2 million with international orders particularly strong.

Shares believes there is scope for further positive surprises from the £495.5 million cap, gradually rebuilding confidence in its expansion story. Brisk third-quarter business could see increases to consensus estimates
for 2013 and 2014 profit of £50.9 million and £58.8 million respectively. Canaccord Genuity’s Wayne Brown has a ‘buy’ recommendation and 850p price target for 35% upside.

Shares says: Buy SuperGroup at 633p.