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.
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
Recent history of profit warnings
High debt levels