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Halfords Group PLC (LON:NFD) are not getting the love they deserve, analysts at Peel Hunt reckon, suggesting the shares have around 50% upside from current levels. 

“Everyone knows”, analysts Jonathan Pritchard and John Stevenson said, that this year the leisure sector has been all about cycling and staycations. 

“The big question is why investors do not believe that the clear, structural tailwinds actually change HFD’s earnings power, short or long term. 

“They do,” the pair insisted, arguing that this cycling boom “will be more sustained than others before it” as Downing Street and many local cities bring in measures to encourage cycle use.

Halfords is also starting to “look much better to customers”, helped by joined-up across silos, booming more “digitally credible” and using customer-relationship management more effectively. 

In July, the retailer said the second half of the year will see better profits and modelled three scenarios: the first will see an underlying loss before tax of £0-10mln, the second £0-10mln and third £10-20mln, based on forecasts of revenue dropping 9.5%, 7.5% and 5% respectively.

A second-quarter update next Tuesday, September 8, “should impress”, the Peel Hunt analysts predict, and “the tailwinds will keep blowing and this management team won’t skid off course”.

The shares were reiterated as a ‘buy’, with a price target of 250p, versus a previous close of 165p.