416 JP MORGAN2 Oct 2020 11:59
Boohoo Group PLC (LON:BOO) is “on the right path” to start rebuilding confidence in its social responsibility among customers following recent supplier scandals, according to analysts at JP Morgan, who on Wednesday initiated coverage on the stock with an ‘overweight’ rating and 416p target price.
The investment bank said the “material steps forward” in the online fashion firm’s supplier auditing process, already planned for 2020, have been accelerated and are backed by higher investment and third-party specialist support. Analysts added that they did not think the increased auditing processes placed the firm’s “critical “test and repeat” business model under threat” and will continue to provide a “strong competitive advantage” for the firm against its rivals.