Shore Capital hikes Asos price target
By Michele Maatouk
Date: Thursday 27 Aug 2026
(Sharecast News) - Shore Capital lifted its price target on Asos on Thursday to 520p from 420p as it pointed to increased confidence in the online retailer and the sector backdrop.
The broker noted that Asos shares have performed well so far in 2026, up 46% year-to-date and around 17% since its last note in July.
"We believe this reflects growing confidence in the group's turnaround, helped by a more engaged investor relations strategy, supportive sector and macro read-across, plus recognition of the operational progress achieved over the past two years," it said.
The broker said while the market remains competitive, with ongoing headwinds in areas such as sportswear, there has also been positive recent read-across from the likes of Next and data points from BRC, Barclaycard, GfK and the Asda Income Tracker, which suggest online sales, clothing demand and consumer confidence have held up over the summer months.
"Going forward, with balance sheet concerns now reduced, the investment debate has moved on from recovery to whether Asos can return to sustainable top-line growth, and improved profit and cash generation," it said. "The September trading update is therefore important to see if trends have continued during H2 and to assess the early FY27F, and medium term prospects."
It said the new price target suggests 25% upside with a circa 6x EV/EBITDA, which is still a discount to peers.
Shore analysts Katie Cousins and Clive Black maintained their 'buy' rating on Asos.
At 1120 BST, the shares were up 0.7% at 417.50p.
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