Asos: Liberum goes on sale, target lowered

( – Liberum on Wednesday reduced its recommendation on Asos shares from ‘hold’ to ‘sell’, with a price target lowered from 700 to 500 pence.

According to the broker, the annual results published in the morning by the online fashion specialist proved to be ‘disappointing’ even if they were partly well known following the successive warnings issued by the group.

Returning to the presentation of the new strategy, which aims to shorten the product cycle, reduce inventory, as well as eliminate excess costs and improve capital efficiency internationally, Liberum said he was far from impressed. , believing that management had not sufficiently prepared for the event.

For the broker, the depressed valuation that currently characterizes the action Asos finds its explanation in the high level of its debt, a negative free cash flow and in the risk of execution which surrounds the implementation of the new strategy.

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