ShoreCap 'happy' to reiterate 'buy' on Boohoo
ShoreCap kept the faith in Boohoo even after news that its co-founders, the group's executive chairman Mahmud Kamani and executive director Carol Kane, had reduced their stakes in the online fashion retailer's stock, happily reiterating its 'buy' recommendation.
In a research note sent to clients, analyst Greg Lawless highlighted the growing similarities between Boohoo and its Spanish peer Inditex, the latter of which owned the iconic Zara brand.
"In our view, the Boohoo group has momentum and continues to leverage its multi-brand platform. With seven brands in the portfolio the company is starting to resemble Inditex (owner of Zara) with a stable of eight high street brands," said Lawless.
"We are happy to reiterate our BUY rating. Boohoo group remains a key disruptor in UK clothing and this is another good trading update which will reassure investors that the momentum continues."
His comments followed news out earlier in the same session that Kamani and Kane had sold 15.0m shares, representing 4.3% of the group's shareholder's equity, via a placing with institutional shareholders at a price of 285.0p per share, in the process reducing their own stakes to 13.1% and 2.7%, respectively.
They also followed an upbeat trading statement out of the company in which it reported a record 'Black Friday'.