Asos: shares drop after Morgan Stanley cuts view

(CercleFinance.com) - Asos shares are down almost 5% to a two-year low on Tuesday after Morgan Stanley cut its target price on the British fashion retailer, citing concerns on quality of earnings and cash flow.


The broker - which has an "underweight" rating on the stock - has cut its target price from 5,000 pence to 3,200 pence.

"Asos has self-financed its expansion for the last 15 years; despite slower growth, it no longer seems able to do so," Morgan wrote in a research note.

The shares are currently down 5% at 4,280 pence.

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