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Change up a gear with Halfords

The retailer stands to benefit from government backing of the cycling industry
Change up a gear with Halfords

Halfords (HFD) is benefiting from a surge in cycling sales as a result of coronavirus that has sent a trend of broker forecast downgrades sharply into reverse (see table). And the reasons for optimism about the retailer's future go beyond a quick British fling with bicycles.

IC TIP: Buy at 166p
Tip style
Risk rating
Long Term
Bull points

Market leader in bicycles

Nationwide presence affords it proximity to customers

Car servicing to rise in importance owing to recession

Disposing of lower-returning stores

Bear points

Recent history of profit warnings

High debt levels

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