(CercleFinance.com) – Asos shares were among the biggest drops in the FTSE 250 index on the London Stock Exchange on Friday, penalized by a lowering of recommendation by RBC.
Analysts at the Canadian bank downgraded their advice to ‘in-line performance’ from ‘outperformance’ previously, with a price target halved, from 2,000 to 1,000 pence.
In a research note, RBC said it feared that the competitive advantage that the online clothing group had so far compared to traditional retailers is being eroded.
‘This has undermined our confidence in the stock’s ability to outperform, especially as near-term growth is set to suffer from weaker consumer spending and measures to preserve profitability’ , says RBC, which now says it prefers the title Zalando within the sector.
Around 1:00 p.m. (London time), the stock lost 4.8% to hit a new historic low.
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