Halfords shares were downgraded on Friday to Sector Perform by RBC Capital, citing the stocks execution risks but fair revaluation.

The retailer shares were downgraded to Sector Perform from Outperform and given a price target of 220p, down from its previous target of 230p.

RBC told investors in a research note that the stocks valuation is now fair following a re-rating. RBC stated that Halfords remains a “strong player” in a challenging retail space, but believes that execution risks remain.

Halfords shares have performed rather lacklustre this year, with its shares down over 3%.

The group reports its preliminary results on the 15th June. In its Q3 results back in January, revenue grew 21.7%, with a significant jump in autocentre revenue which soared 74.1%.

However, the group anticipated a breakdown in profits due to a lower-than-expected technician capacity, which Halfords expects to limit its margin sales for the remainder of the year.

Inflation has proved troublesome for UK consumers, and will likely impact Halfords higher priced goods such as tyres. However, so far essential items have proved resilient in the current macro-economic environment, with retailers such as Wickes and Kingfisher reporting a resilient performance among its big-ticket items.