Credit Suisse cut its stance on ASOS to 'underperform' from 'neutral' on Monday and slashed the price target to 6,075p from 7,050p, saying the first-half results exposed some of the challenges of its growth model as customer growth moderated and the tailwind from FX this past year and a half largely ran its course.
"The near-term debate on the stock will largely focus on cash flows which look poor in the Medium term, cost leverage, and earnings quality, all of which we do not expect to change until at least the prelims in October," CS said.

The bank said it was leaving its below-consensus sales growth forecast of 27% for FY2018 largely unchanged, but with a slightly higher UK contribution, it cuts its pre-tax profit forecast by around 1-2% over the forecast period.

"While valuation gap to peers has narrowed following shares circa -10% since interims and -17% from March all-time highs, we think risks are clearly to the downside and expect shares to underperform peers."

Shore Capital took a more positive stance on the stock, however, reiterating its 'buy' rating following the company's interim results, in which ASOS upped its capital expenditure guidance for FY2018 to between £230m and £250m from £220m, which it said showed solid progress.

"ASOS continues to win from the structural channel shift online and is laying the foundations for £4bn of sales over the medium term," Shore said.

ASOS shares slumped last week as its interim profit missed expectations and the company announced an increase in its capex to facilitate additional distribution and logistics facilities.

In the six months to 28 February, pre-tax profit rose to £29.9m from £27.3m in the same period a year ago, as revenue pushed up 25% to £1.16bn. Analysts had been expecting pre-tax profit of £30.8m.

At 1210 BST, the shares were down 1.6% to 6,200p.

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