Asos: shares drop after Berenberg cuts target price
(CercleFinance.com) - Shares in British fashion online retailer Asos are down 3.
5% after Berenberg analysts slashed their target price for the share from 8,300 pence to 4,000 pence after the group's profit warning last Monday.
On a note to clients, Berenberg reminds investors that the company had to cut its full-year guidance by 50% given uncertainty resulting from recent trading.
However, the German broker remains a buyer of the stock.
"While the warning has understandably left investors concerned about the balance sheet, we believe ASOS will return to being FCF positive next year," it said in the report.
Asos shares are currently down 3.6% at 2,199 pence in London.
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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.
5% after Berenberg analysts slashed their target price for the share from 8,300 pence to 4,000 pence after the group's profit warning last Monday.
On a note to clients, Berenberg reminds investors that the company had to cut its full-year guidance by 50% given uncertainty resulting from recent trading.
However, the German broker remains a buyer of the stock.
"While the warning has understandably left investors concerned about the balance sheet, we believe ASOS will return to being FCF positive next year," it said in the report.
Asos shares are currently down 3.6% at 2,199 pence in London.
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.