Last checked at 
(Sharecast News) - Liberum lifted its price target on Asos on Tuesday to 700p from 500p and maintained its 'sell' rating as it sees "significant" risks in the strategy outlined by the group to improve profitability and remains unconvinced it will be able to fully deliver on those promises.
"Although we note that consensus estimates remain conservative and our forecasts for FY'24E and FY'25E are ahead of consensus, the balance sheet remains stretched," the broker said.
"As a result, there remains significant risk that, in a plausible downside scenario, the group may need to raise further cash from the equity market at a significant discount to current share price which keeps us from going any more positive on the stock."
Liberum said its new target price reflects the broker's upgraded estimates for outer years but does not reflect the potential for an equity raise.
