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Gobble up Hotel Chocolat

The high-street chocolatier has set its sights abroad
Gobble up Hotel Chocolat

With international growth plans, strong online traction and continued UK store openings, Hotel Chocolat’s (HOTC) robust balance sheet and solid underlying trading should help underpin management’s ambitions for the brand. But the shares have been under pressure due to the general equity rout, and we think this could prove a buying opportunity, despite what on the surface appears a rather lofty rating.

IC TIP: Buy at 305p
Tip style
Growth
Risk rating
High
Timescale
Medium Term
Bull points

International brand building
Solid revenue growth
New store openings
Strong cash generation

Bear points

Potential margin dilution
Low consumer confidence

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