RE: Bank of America upgrade Boohoo to a buy!20 Jan 2023 09:14
Bank of America Merrill Lynch upgraded Boohoo and Asos on Friday as it took a look at European online retail.
Asos and Boohoo were both lifted to 'buy', from 'underperform' and 'neutral' respectively. In the same note, the bank upgraded Zalando to 'buy' from 'underperform' and kept its 'buy' rating on THG.
"We are still prudent on consumer demand and model almost no sector growth in 2023 - but argue this is well understood by the market: caution on these stocks has brought 2023-2024 profit expectations down 55-90% since January 2022, & valuation to 13x EBITDA 2024, 35% below pre-pandemic," it said