RE: Getting ready to load up large next week...3 Oct 2020 17:32
Analysts currently expect Boohoo to generate earnings per share of 7.5p this year. However, I believe it will easily beat this – H1 earnings alone were 4.53p. Realistically, I think EPS could be 8p+ this year. Assuming Boohoo can grow EPS 30% the following year, we could be looking at EPS of 10.4p for the year ending 29 February 2022.
Give the stock a P/E ratio of 45 on EPS of 10.4p, and we’re looking at a share price of 468p. That’s about 30% higher than the current share price.
I’ll point out that I’m not the only one who expects Boohoo’s earnings, and share price, to surge. Paul Scott at Stockopedia said earlier this week that he believes Boohoo is heading for EPS of 10p, and “probably double that within another two to three years.” He believes Boohoo shares could be worth 800-1,000p in the medium term.