Asos: Credit Suisse slashes target price

(CercleFinance.com) - Credit Suisse has slashed its target price for the online fashion and cosmetics retailer from 2,850 pence to 1,450 pence, although maintains its Outperform rating on the stock.


Q3 sales to end-May were not as weak as initially thought, although two concerns are the lack of sales, despite a fairly buoyant apparel market in most major markets, and, with annual sales 54% ahead of 2019, the company is barely profitable, the broker said.

"It is a tough operating environment, supply chains are longer and less flexible and there is considerable pressure on cost in most areas".

"Although we have reservations about the US, the rest of the business should be profitable and cash-generative through the cycle," Credit Suisse adds.


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