French Connection Group Share Price Forecast September 2021 – Time to Buy FCCN?
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French Connection Group Plc is a branded fashion clothing retailer that involves the design, production, and distribution of apparel made for men and women. It also operates through a wholesale segment where multi-brand clothing is available. The London-based company was established in 1969 but it recently became one of the gaining shares since yesterday before the global financial markets closed for the day. In the following section, we shall take a look at the company’s current position and figure out what all interested investors can expect from this particular investment opportunity in the days to come.
French Connection– Technical Analysis
The fashion company has a market capitalisation of $22.8 million. Yesterday, FCCN shares touched $26.6, recording a 12.24% uptick. The company’s income statement shows that gross profit for FCCN remained just above $18.4 million while the last year’s total revenue stands near $71.5 million.
But from a technical viewpoint, things are going well for the popular fashion brand as it has been clubbed with other gainer stocks of the day. Technical analysis indicates that FCCN shares are going to be within the strong buy zone for a while. Several industry-favourite technical indicators including oscillators and moving averages like MACD (1.3), RSI (65.4), SMA (23.9), and EMA (24.2).
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Recent Developments
A few days before, French Connection hit the headlines when it was offered a $40 million buyout from a group of bidders for a complete takeover including its second-largest shareholder. This helped FCCN shares reach new heights. As the news broke out, FCCN went up by 15% on the London stock exchange. The early offers of a buyout presented by Gordon Brothers and Spotlight Brands did not work out with the consortium.
The bidder group who have offered 30 pence per share for French Connection total takeover include KJR Brothers Ltd., Amarjit Singh Grewal, and Apinder Singh Ghura (second-largest shareholder) This offer price would also include a 30% premium to FCCN’s yesterday’s closing price on LSE. The British fashion retailer is currently having discussions over the offer and in the meantime looking for more suitors.
French Connection has influence within the financial markets being a once-dominant British fashion retailer. The company introduced a new and provocative brand dubbed FCUK but unfortunately, that clothing brand didn’t do well in the past decade. As Fcuk failed to turn profits and was badly hit by the pandemic situation, French Connection sales hit a hard time in the past.
Should You Buy FCCN Shares?
The current chair and the main shareholder of the company, Stephen Marks, founded the company to be a representation of fashion clothing fit for the youth of Britain (male and female). The brand saw unparalleled growth in the past but as the fashion retail sector became more competitive, French Connection Group took a back seat.
The formal, ongoing sale process ensures that FCCN would be at the centre of action in the coming weeks. Therefore, experts are keeping a close eye on this one. The company’s spokesperson has clarified that no talks have been finalised but in case they do, any offer is likely to be in cash.
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