Asos share price: Analysts argue December selloff was overdone
RBC argues that the selloff in Asos (LON:ASC) shares in December was overdone, although it has created an ‘opportunity’ to buy the stock, Proactive Investors reports. The comments came as the analyst hiked their price target on the online retailer.
Asos’ share price has been little changed in London in today’s session, having slipped 0.24 percent lower to 3,292.00p as of 14:47 GMT. The group’s shares have lost more than 54 percent of their value over the past year.
RBC lifts price target
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
RBC reaffirmed Asos as an ‘overweight’ today and hiked its price target on the shares from 3,200p to 3,600p. Proactive Investors quoted the analysts as saying that the selloff in the group’s shares had been too harsh which provided investors with an ‘opportunity’ to get in on the cheap, even with the stock recovering over the past few weeks. Asos slumped in December after trimming its sales growth guidance, and pointing to ‘significant deterioration’ in November.
“We continue to believe that its industry-leading proposition and pace of innovation will enable ASOS to continue taking share in its large addressable market,” the broker pointed out, adding that having assessed “the risk/reward, we are still compelled by the opportunity the current share price creates”.
Other analysts on Asos
Peel Hunt reaffirmed Asos as a ‘buy’ earlier this week, without specifying a price target on the shares, while UBS, which also rates the online retailer as a ‘buy,’ axed its valuation on the stock from 7,500p to 3,500p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 5,195.74p.
Last month, Peel Hunt reinstated its ‘buy’ rating on the London-listed retailer, arguing that the plunge in Asos’ share price was a ‘rare buying opportunity’.