Asos: UBS still on hold after profit warning

(CercleFinance.com) - UBS has reiterated its neutral rating on the stock, along with its target price of 1,700p after reducing its financial targets for this FY yesterday.


"ASOS published an unscheduled trading update for the three months to 31 May. Local currency sales were flat yoy, +4% yoy when removing Russia from the base," UBS said.

Note that the group is now targeting a pre-tax profit of 20 to 60 million pounds for the current financial year, a far cry from the 110-140 million pounds previously expected.

Meanwhile, Asos says it expects sales growth of 4% to 7%, compared to a previous target range of 10% to 15%.

Whatever the metrics, investors who have held onto their shares today are happy - they are up over 8% in late morning trading.


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