A boost in retail sales is filtering through

A boost in retail sales is filtering through

Deutsche Bank has raised its target share price on Li & Fung. The investment bank has a "buy" rating on the sourcing and apparel group.

In a note, Deutsche Bank said that Li & Fung was expected to benefit from "an inflationary environment" as well as "potential efficiency benefits".

Shares in Li & Fung have continued to rise and at one point today were up 50% this year and 18% this month.

Deutsche Bank no has a target price of HK$53.10, up from HK$47.05.

In August, Li & Fung said the "nascent economic recovery" in the US had enabled it to post a 55% hike in first half net profits and a 12% increase in revenues. The Hong Kong-quoted company said outsourcing deals and contributions from recent acquisitions had also helped to boost its figures.

"The continued growth of our higher-margin onshore business in the United States and Europe, disciplined cost control and an increased number of value-added services helped deliver solid operating leverage, which resulted in the highest core operating profit growth over a half-year period," Li & Fung said at the time.