Asos: Canaccord Genuity remains a seller
(CercleFinance.com) - Canaccord Genuity maintains its "sell" rating on the Asos stock, along with a target price of 3,622 pence, saying that the British online fashion retailer's H1 results support its negative stance on the share.
As the Canadian broker expected, operating costs grew ahead of sales over the first-half of the financial year, with warehousing costs being the main drag, as various distribution centres ramp up, it pointed out.
In a note, Canaccord reminds that it has been a consistent seller of the stock, with a thesis that the cost of growth will continue to come in ahead of market expectations, making the stock's valuation difficult to justify.
According to the broker, today's report lends further support to this thesis.
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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 the Canadian broker expected, operating costs grew ahead of sales over the first-half of the financial year, with warehousing costs being the main drag, as various distribution centres ramp up, it pointed out.
In a note, Canaccord reminds that it has been a consistent seller of the stock, with a thesis that the cost of growth will continue to come in ahead of market expectations, making the stock's valuation difficult to justify.
According to the broker, today's report lends further support to this thesis.
Copyright (c) 2018 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.