ASOS share price: what’s the latest ahead of its trading update?
The online fashion retailer will release its first trading update since the Christmas period next week, with investors hoping for a solid performance to kick-off 2020.
ASOS will unveil its first trading update since Christmas next Thursday, with investors hoping for a solid performance to kick-off 2020.
The online fashion retailer concluded its 2019 financial year with revenue growth of 12% to £2.7 billion. However, higher-than-expected expansion costs in the US and Europe took its toll on the company’s full-year pre-tax profit, with it falling 68% to £33.1 million.
However, a boost in sales over the Christmas period is expected and with the business completing much of its transformation program, investors are hopeful for a strong set of results next week that could lift its share price.
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HSBC and Goldman Sachs optimistic about ASOS’ share price
Analysts at HSBC and Goldman Sachs remain upbeat about ASOS with the pair both giving the stock a ‘buy’ rating in December and issuing price targets of £36.15 and £38 respectively.
Based on ASOS trading at £31.63 as of 11:40 GMT on Thursday the two banks believe the stock has a potential upside of 14.3% to 20.1%.
ASOS said that it is focused on improving its customer experience and with over 60% of its sales coming from international customers and the investments it’s made to strengthen its global logistics platform, the company believes it is well positioned to drive growth in 2020.
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