5. GENDER EQUALITY

ASOS Upgraded to Buy Rating by Citigroup, Predicted Potential Upside of 34.50%

Written by Amanda

May 20, 2023 – ASOS (LON:ASC), the prominent online fashion retailer, has been upgraded to a “buy” rating by Citigroup. This has come as good news to its clients and investors who are now poised to make gains from the predicted potential upside of 34.50%.

Bloomberg Ratings reports that Citigroup has released a research report where it presently set a GBX 600 ($7.52) price target on the stock, down from their prior price target of GBX 780 ($9.77). This rating and accompanying price target indicate that Citigroup believes that ASOS’s stock is currently undervalued and expecting it to rise soon.

ASOS Plc operates as an online fashion retailer worldwide with an extensive range of products for both men and women under various brands, including ASOS Design, Collusion, Topshop, Miss Selfridge, and many more. It also offers third-party brands in collaboration with other fashion retailers globally.

According to Bloomberg data, Wall Street’s top-rated analysts have whispered into their clients’ ears five stocks which they believe are better buys than ASOS at present. However, ASOS still maintains its “Hold” rating among expert analysts globally.

The company’s involvement in payment processing businesses provides convenience for customers around the globe to purchase fashion products with ease. Furthermore, its employer marketing staff involvement caters to digital optimization in e-commerce platforms worldwide.

In conclusion, while this upgrade is welcome news for investors in ASOS’s stock, experts suggest keeping an eye out for other stocks that may offer greater potential gains shortly. Nonetheless, it is worth investing in ASOS now before broader market catches on to its potentials as predicted by Citigroup.

ASC

Updated on: 21/05/2023

Financial Health

Neutral



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Price Target

Current $0.00

Concensus $0.00


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ASOS Plc Shares Downgraded by Top Brokerages Amidst Poor Performance and Intense Competition


On May 20, 2023, ASOS Plc, an online retailer headquartered in London, found its shares being downgraded by some top brokerages in the UK due to poor performance.

Goldman Sachs Group, Deutsche Bank Aktiengesellschaft and Royal Bank of Canada were among the brokerages that lowered their price targets for ASOS shares. The reduction was prompted by lacklustre results from the fast-fashion brand and concerns over its ability to compete with rivals offering similar fashion at lower prices.

One analyst rated the stock as a sell whilst four others maintained hold ratings and three analysts gave buy ratings. According to Bloomberg.com, the consensus rating for ASOS is “Hold,” with an average target share price of GBX 896.82 ($11.23).

ASOS’s current market cap stands at £446.19 million with a negative PE ratio at -1,439.03 and P/E/G ratio of -1.26. Its beta value is 2.94 which indicates that it is more volatile than broad market indices.

Shares of ASC stock traded down GBX 7.40 ($0.09) on Friday, hitting GBX 446.10 ($5.59). This decline comes despite a strong start at €134 (£128/$160) per share in early April 2023.

The online retailing giant has been struggling since it announced plans to close its China warehouses due to rising costs earlier this year while also tackling issues arising from changing consumer trends amidst fierce competition within the industry.

Despite this challenging scenario for ASOS Plc, there are five other top-rated stocks that analysts believe are better buys right now in today’s market environment.

Investors are hence advised to pay closer attention to these stocks as they may offer greater returns compared to those expected from ASOS based on the latest rating revisions as well as earnings reports released recently by the company concerning such topics as sustainability and customer experience.

Source: beststocks.com

About the author

Amanda

Hi there, I am Amanda and I work as an editor at impactinvesting.ai;  if you are interested in my services, please reach me at amanda.impactinvesting.ai