Asos: share hit by a broker downgrade
(CercleFinance.com) - The Asos share is down 4.
2% in London today, weighed on by a Jefferies analysts downgrading their "buy" rating to "underperform," while slashing their corresponding target price from 3,500 pence to 2,000 pence, after a new profit warning that led to the share price falling by approximately 15%.
The broker believes that the UK's online clothing retailer "will need to invest in a combination of gross margin, distribution and marketing to reaccelerate sales growth."
"Against a tough macro-economic backdrop we believe this will limit the margin rebuild to 1.6% in FY20E and 2.5% in FY21E," Jefferies says, which has forecasts that are around 20% below the consensus for 2020.
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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.
2% in London today, weighed on by a Jefferies analysts downgrading their "buy" rating to "underperform," while slashing their corresponding target price from 3,500 pence to 2,000 pence, after a new profit warning that led to the share price falling by approximately 15%.
The broker believes that the UK's online clothing retailer "will need to invest in a combination of gross margin, distribution and marketing to reaccelerate sales growth."
"Against a tough macro-economic backdrop we believe this will limit the margin rebuild to 1.6% in FY20E and 2.5% in FY21E," Jefferies says, which has forecasts that are around 20% below the consensus for 2020.
Copyright (c) 2019 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.