RE: Incoming PM?5 Sep 2022 10:09
The Sunday Times has reported that retailer, ASOS PLC (LSE:ASC) has privately briefed City analysts on guidance for full year 2022 and full year 2023 profits sending shares down by 4.75%.
The article said one analyst anonymously expressed unease at how ASOS was managing expectations.
Shore Capital analyst Eleonora Dani said she was concerned about the potential for selective disclosure whilst acknowledging no non-public information was shared.
Based on the new unofficial guidance, Dani said ASOS expects full year 2022 pre-tax profits at the lower end of the previously communicated guidance of £20mln-£60mln.
Dani pointed out that whilst market expectations in aggregate have not necessarily been adjusted, “we would be very worried about the basis for an orderly market in the group's shares as discussions and research notes around forecasts were evident from deliberately selective conversations with analysts.”
Dani concluded “We would take a very dim view of the possibility, never mind the reality, of such behaviour and reiterate our sell rating.”