Berenberg reiterates ‘buy’ rating for ASOS ahead of half-year results
The Hamburg-based investment bank remains optimistic about the online retailer’s performance despite the challenging environment for UK businesses amid the Covid-19 pandemic.
Analysts at Berenberg remain optimistic about ASOS despite the challenging environment for UK businesses amid the Covid-19 pandemic, with the Hamburg-based investment bank reiterating its ‘buy’ rating for the stock ahead of the retailer's half-year results on Wednesday.
Berenberg also remain upbeat about the ASOS’ share price trajectory, with analysts issuing a target price for the stock of £25 per share. Based on the fashion retailer trading at £14.95 a share as of 16:11 (GMT) on Tuesday, analysts at Berenberg believe the stock has a potential upside of 76%.
ASOS shares climb 40% higher ahead of results
ASOS shares rallied as much as 40% higher on Tuesday ahead of its half-year results, with investors expecting strong sales, driven by huge discounts designed to get consumers in lockdown spending online.
Analysts at Peel Hunt will be shocked if ASOS is able to record a strong set of sales in its second quarter, with the investment bank forecasting a 25% decline in revenues for online retailers like ASOS and its rival Boohoo. However, analysts at the bank believe that ASOS stock is cheap at current levels.
‘With competitors such as New Look and Arcadia likely to be looking at accelerated store closures and declines, we continue to see the share price declines at ASOS and Boohoo as a buying opportunity,’ Peel Hunt said in a note.
How to trade UK retail stocks
Looking to trade ASOS? Open a live or demo account with IG and buy (long) or sell (short) the stock using derivatives like CFDs in a few easy steps:
- Create an IG Trading Account or log in to your existing account
- Enter ‘ASOS’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
React to global volatility
Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
- Round-the-clock assistance – our highly-skilled team are on hand to support you
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
