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.
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