RE: Prepare for broker upgrades a plenty5 Sep 2024 14:36
Shore capita being party poopers as usual..
Analysts at City broker Shore Capital Markets poured more cold water on this rare ASOS win in their analysis of the joint venture announcement.
“We continue to have concerns that ASOS is losing market share, and ultimately this reduces our confidence in the visibility and sustainability of the group,” said Shore Cap.
The Topshop disposal and refinancing strategy announced today “should provide some near-term cushions”, said the broker, but ASOS nonetheless remains overpriced on an enterprise value-to-EBITDA basis relative to peers like Boohoo Group PLC (AIM:BOO).
As such, ASOS remains a sell in Shore Cap’s eyes.