Boohoo 'attractively valued', says RBC Capital
ASOS
351.20p
16:34 10/05/24
0.34%
1.20p
RBC Capital Markets upgraded its stance on shares of fast-fashion retailer Boohoo on Tuesday to ‘outperform’ from ‘sector perform’ and lifted the price target to 410p from 380p.
Boohoo Group
35.20p
16:35 10/05/24
2.98%
1.02p
FTSE AIM 100
3,819.55
16:49 10/05/24
n/a
n/a
FTSE AIM 50
4,147.62
16:49 10/05/24
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FTSE AIM All-Share
789.87
16:50 10/05/24
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General Retailers
4,048.84
17:09 10/05/24
1.14%
45.61
The bank said Boohoo shares are attractively valued, particularly considering the potential for consensus upgrades and the stock's relative underperformance versus Zalando and Asos.
"We also take a more constructive view on long-term margins," RBC said. "The company's steps towards improving its ESG policies are credible and over time, we expect the shares to re-rate to reflect that."
At 0920 BST, the shares were up 3.5% at 299.54p.