Asos: Credit Suisse raises target price
(CercleFinance.com) - A Credit Suisse analyst said on Thursday that he has revised his target price for the Asos Group stock, appreciating consumer engagement and the group's medium-term outlook.
As a result, the broker has raised its target price for the share from 3,600 pence to 4,100 pence, maintaining its "Outperform" recommendation.
"Our social media tracking shows record engagement on Instagram in May, and over the past 2 years it has shown inflexion points in sales growth. While Asos may have been more capacity constrained than some peers of late, these appear to be easing, and we have increased 2H sales growth to 11% (vs consensus -4%) and FY EBIT margins to 2% (vs CS 1% and consensus 0.3%)," Credit Suisse says.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
As a result, the broker has raised its target price for the share from 3,600 pence to 4,100 pence, maintaining its "Outperform" recommendation.
"Our social media tracking shows record engagement on Instagram in May, and over the past 2 years it has shown inflexion points in sales growth. While Asos may have been more capacity constrained than some peers of late, these appear to be easing, and we have increased 2H sales growth to 11% (vs consensus -4%) and FY EBIT margins to 2% (vs CS 1% and consensus 0.3%)," Credit Suisse says.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.