Boohoo Group (BOO)

Sector:

Retailers

Index:

FTSE AIM 100

81.12p
   
  • Change Today:
      0.90p
  • 52 Week High: 331.90
  • 52 Week Low: 69.58
  • Currency: UK Pounds
  • Shares Issued: 1,267.69m
  • Volume: 8,447,061
  • Market Cap: £1,028.35m
  • RiskGrade: 206

Liberum slashes target price for Boohoo, says 2H 2022 guidance was overoptimistic

By Alexander Bueso

Date: Tuesday 04 Jan 2022

LONDON (ShareCast) - (Sharecast News) - Analysts at Liberum slashed their target price for shares of Boohoo, arguing that the global supply chain logjam wasn't the only factor behind the online fashion retailer's recent profit warning.
The company's excessively optimistic guidance for the back half of 2022 was also to blame, they said.

"We believe the inflated supply chain costs and weakened delivery proposition will persist for the next 12-18 months," they explained.

Hence, they slashed their estimates for Boohoo's earnings across 2022-24 by over 40%, resulting in a cut to their target price from 360.0p to 200.0p.

Higher supply chain costs were here to stay, the analysts added, telling clients that they would reset at a higher level following the pandemic.

Furthermore, they judged that the company would need to invest in prices and marketing to make up lost ground in the States and in the Rest of Europe.

In turn, that would keep its EBITDA margin below its 10% target out to 2027.

An increased rate of merchandise returns was another source of concern.

However, the analysts continued to be upbeat about Boohoo's longer-term potential and believed that it could hit its medium-term growth targets, because Chinese rival Shein's growth in the US could be in the company's favour in the long-run.

They also said they were "excited" by "developments" at Debenhams, where the opportunity was "substantial".

Changing hands on 0.6 times' their estimate for the retailer's EV/EBITDA in 2023, they believed the shares offered "good long-term value", which led them to reiterate their 'buy' recommendation.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Boohoo Group Market Data

Currency UK Pounds
Share Price 81.12p
Change Today 0.90p
% Change 1.12 %
52 Week High 331.90
52 Week Low 69.58
Volume 8,447,061
Shares Issued 1,267.69m
Market Cap £1,028.35m
RiskGrade 206

Boohoo Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
51.19% below the market average51.19% below the market average51.19% below the market average51.19% below the market average51.19% below the market average
36.17% below the sector average36.17% below the sector average36.17% below the sector average36.17% below the sector average36.17% below the sector average
Price Trend
95.31% below the market average95.31% below the market average95.31% below the market average95.31% below the market average95.31% below the market average
92.31% below the sector average92.31% below the sector average92.31% below the sector average92.31% below the sector average92.31% below the sector average
Income
69.05% below the market average69.05% below the market average69.05% below the market average69.05% below the market average69.05% below the market average
66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average
Growth
33.9% below the market average33.9% below the market average33.9% below the market average33.9% below the market average33.9% below the market average
28% below the sector average28% below the sector average28% below the sector average28% below the sector average28% below the sector average

What The Brokers Say

Strong Buy 10
Buy 1
Neutral 8
Sell 1
Strong Sell 2
Total 22
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Boohoo Group Dividends

No dividends found

Trades for 20-May-2022

Time Volume / Share Price
16:35 1,074,174 @ 81.12p
16:29 2,067 @ 81.24p
16:29 678 @ 81.28p
16:29 1,010 @ 81.28p
16:29 122 @ 81.31p

Boohoo Group Key Personnel

CFO Neil James Catto
CEO John Lyttle

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