RBC downgrades boo26 Jan 2023 20:40
In a separate note, RBC also downgraded Boohoo to 'underperform' from 'sector perform', keeping the price target at 35p.
"We expect BOO's less competitive service internationally to weigh on its top-line recovery mid-term while benefits from a new US warehouse might deliver later and less than expected," it said.
"Meanwhile, limited scope for price increases, ongoing elevated marketing spend and inefficiencies from a new distribution centre (DC) are likely to weigh on a margin recovery."
RBC said these factors mean its EBITDA forecasts are 21% to 28% below consensus.
"Following the stock's recent more than 100% re-rating, we view valuation as demanding, considering risks of further earnings disappointment."
These guys need to come onto this BB and talk to T4G to realise just how wrong they are lol
Strong sell