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Asos, the favourite stock after an “exceptional” trading update

By Angela Gonzalez-Rodriguez

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After the British online fashion retailer reported solid sales for the third quarter, gaining thus the trust of many analysis firms which now recommend their clients to buy the stock.

Asos reported sales growth of 30 percent, well above the 23 percent previous forecast. Having more active online customers than it reported before – 12 million active customers, a 24 percent more than a year ago – and with 59 percent of retail sales coming from abroad, The firm also said it will get a sales boost from a weaker pound.

Based on such a promising set of figures, analysts at Numis rate the online fashion retailer a ‘buy’ after last week’s “exceptional” trading update.

Currently, Numis has a target price of 5,250 pence for the 3.6 billion pounds valued company. It is worth remembering that shares closed at 4,371 pence on Friday.

Looking ahead, the fashion e-tailer is expecting to capitalise on the weaker post-Brexit pound to offset the economic slowdown in China. Asos (ASC) kicked trading up a gear in its third quarter, accelerating sales growth beyond City expectations. With its Chinese business finally closed, bosses have now upgraded sales forecasts for the year, which has seen its share price rally to a 24-month high, recalls ‘Interactive Investor’.

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