Broker Singer met Debenhams managment last week and reiterated its buy advice afterwards.

Singer analyst Matthew McEachran said the meeting had reaffirmed the department group’s strategic ambitions. He said the retailer’s recent de-rating had resulted in a valuation anomaly.

He said: “The business is increasingly differentiating itself within a crowded high street and plans to enhance the product offering.”

Debenhams has underperformed the All-Share index by 12% over a two-month period but McEachran said the retailer is too lowly rated, “despite growth assumptions seemingly being well founded and not wholly UK trading-dependent”.

He said: “With low gearing and strong free cash flow, Debenhams will reintroduce a dividend this year and has the flexibility to accelerate store refits and consider enhancing earnings per share.”

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