Shore Capital view17 May 2023 08:20
Shore Capital expects a boost from Boohoo
Shore Capital has upgraded fast-fashion retailer Boohoo (BOO) as there is potential for margin improvement despite declines in its market share.
Analyst Eleonora Dani lifted her recommendation from ‘hold’ to ‘buy’ and retained a 54p target price on the shares which jumped nearly 12%, or 4.5p, to 42p after annual results.
The group reported stronger figures for 2023 than expected, with revenues down 11% year-on-year but still better than consensus.
‘Our projected full-year 2024 ebitda has been raised by 12%, and there is potential for further gains driven by margin improvements,’ she said.
‘Despite a recent decline in Boohoo’s market share, the upcoming fiscal year offers favourable year-on-year comparisons, along with a streamlined inventory and the phased launch of a US warehouse, which are expected to boost the company’s prospects.’