Stock Market News
Deutsche Bank upgrades ASOS to 'buy'
Deutsche Bank upgraded online fashion retailer ASOS to 'buy' from 'hold' and hiked the price target to 7,400p from 5,800p.
The bank said ASOS is well placed to continue to benefit from the online channel shift, underpinned by a high pace of active customer number additions and expansion into the activewear and beauty categories.
"In particular in 2018 we expect strong growth in Europe, as the company delivers the full service and cost benefits of its localised logistics and digital shopfronts. Meanwhile, customer economics remain very strong with payback on acquisition costs more than twice as fast as at Zalando."
Deutsche Bank outlined five reasons why it is positive on ASOS. It pointed out that the channel shift online continues and said ASOS should continue to gain channel share. In addition, DB said that Face & Body and Activewear categories increase the total addressable market.
It also said that international expansion, especially in Europe, has strong prospects, and the customer economics remain very strong.
ASOS is due to report its four months to the end of December on 25 January. Deutsche said the company already qualitatively commented at its mid-October full year results meeting that the new financial year had started strongly, including in the UK.
"Since then the UK clothing market has been somewhat less favourable but we still anticipate solid reacceleration in UK revenue growth to +15%," it said.
At 1502 GMT, the shares were up 1.4% to 6,806p.
The bank said ASOS is well placed to continue to benefit from the online channel shift, underpinned by a high pace of active customer number additions and expansion into the activewear and beauty categories.
"In particular in 2018 we expect strong growth in Europe, as the company delivers the full service and cost benefits of its localised logistics and digital shopfronts. Meanwhile, customer economics remain very strong with payback on acquisition costs more than twice as fast as at Zalando."
Deutsche Bank outlined five reasons why it is positive on ASOS. It pointed out that the channel shift online continues and said ASOS should continue to gain channel share. In addition, DB said that Face & Body and Activewear categories increase the total addressable market.
It also said that international expansion, especially in Europe, has strong prospects, and the customer economics remain very strong.
ASOS is due to report its four months to the end of December on 25 January. Deutsche said the company already qualitatively commented at its mid-October full year results meeting that the new financial year had started strongly, including in the UK.
"Since then the UK clothing market has been somewhat less favourable but we still anticipate solid reacceleration in UK revenue growth to +15%," it said.
At 1502 GMT, the shares were up 1.4% to 6,806p.
Related share prices |
---|
ASOS (ASC) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price