Asos: share up on broker 'like'

(CercleFinance.com) - Asos shares rose in London on Tuesday, in the wake of comments from Deutsche Bank, which began to track the stock with a buy rating and target price of 500 pence.


In a study of the UK retail sector, the analyst expressed preference for Asos, Marks & Spencer and B&M as "specific" and "interesting" stocks.

Deutsche points out that the sector has performed strongly on the stockmarket this year (+25% YTD), although that it is unlikely to repeat this performance in 2024.

Admittedly, the Christmas period should be robust, the broker acknowledges, although it is also likely to be the last thing to rejoice in the post-pandemic recovery that has pulled the retail sector along.

For 2024, the analyst says he expects "anaemic" growth, although does not believe that this will prevent UK retailers from generating solid margins and displaying a generally good state of fitness.

Asos shares rose about 2% on these comments, although are still down 20% YTD.



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