Boohoo share price: Liberum remains bullish on retailer after update
Liberum Capital remains bullish on Boohoo (LON:BOO), arguing that the group has ‘undeservedly’ de-rated, providing an opportunity to pick up the shares cheaply, Citywire reports. The comments came after the retailer updated investors on its performance yesterday, posting a rise in sales for the four months ended December 31 and hiking its revenue guidance.
Boohoo’s share price has surged in London in today’s session, having gained 2.46 percent to 181.55p as of 14:46 GMT. The group’s shares have added about 0.2 percent to their value over the past year.
Liberum weighs in on Boohoo
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Analysts at Liberum reaffirmed Boohoo as a ‘buy’ yesterday, with a price target of 240p on the shares, following the company’s update which revealed a rise in sales.
“We understand the group’s own channels alongside wholesale, which remains a low single digit percentage of the mix, have performed in a similar vein suggesting broad resonance of brand strength across all channels,” the broker’s analyst Wayne Brown commented, as quoted by Citywire, adding that Boohoo’s share price had “de-rated undeservedly of late – from 100 percent to 35 percent of its peak/trough 12-month forward price/earnings rating in the last 18 months – presenting an opportunity to pick up the shares a lot cheaper”.
Analyst ratings update
Barclays, which sees Boohoo as an ‘equal weight,’ lowered its price target on the shares from 240p to 190p today. According to MarketBeat, the London-listed retailer currently has a consensus ‘buy’ rating and an average price target of 234.89p.
Boohoo’s results follow last year’s Asos’ (LON:ASC) profit warning, and updates by FTSE 100 rivals Next (LON:NXT) and Marks & Spencer (LON:MKS) earlier this month. Primark owner Associated British Foods (LON:ABF) meanwhile is scheduled to update investors on its performance tomorrow.