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(Sharecast News) - Liberum slashed its price target on fast-fashion retailer Boohoo on Thursday to 200p from 360p but reiterated its 'buy' rating and said it was "keeping faith in the long-term story".
The broker said Boohoo's recent profit warning was not just a result of the global supply chain logjam but also over-optimism baked into the guidance for the second half of 2022.
"We believe the inflated supply chain costs and weakened delivery proposition will persist for the next 12-18 months, and we therefore cut our FY'22- 24E earnings estimates by more than 40%," it said.
"Our view is that there will be an industry-wide permanent rebasing of supply chain costs at a higher level after the pandemic. We also believe boohoo will need to invest behind prices and marketing to recover lost ground in US and Rest of Europe.
"We therefore estimate EBITDA margin remaining below the 10% target until FY'27E. The increased returns rate brings in an added element of concern around product quality, but we continue to believe in Boohoo's long-term potential, and see a path for recovery to the medium-term growth targets as we think the rapid growth of Shein in the US may be in boohoo's favour in the long-run."
Liberum said it was "excited" by the developments at Debenhams, where the opportunity is substantial.
"Trading at only 0.6x FY'23E EV/sales and 7x EV/EBITDA, we think the shares offer good long-term value."
13 Jun 2024 16:05
UK shareholder meetings calendar - next 7 days
| Friday 14 June | |
| Amaroq Minerals Ltd | AGM |
| Asian Energy Impact Trust PLC | AGM |
| Beowulf Mining PLC | AGM |
| MP Evans Group PLC | AGM |
| Quantum Exponential Group PLC | GM re investment in company |
| Tesco PLC | AGM |
| Trellus Health PLC | AGM |
| Monday 17 June | |
| Ashington Innovation PLC | AGM |
| Bank of Georgia Group PLC | AGM |
| Cambridge Cognition Holdings PLC | GM re fundraise |
| Globalworth Real Estate Investments Ltd | AGM |
| Surgical Innovations Group PLC | AGM |
| Tuesday 18 June | |
| Acceler8 Ventures PLC | AGM |
| Andrews Sykes Group PLC | AGM |
| Anexo Group PLC | AGM |
| ASA International Group PLC | AGM |
| Bay Capital PLC | AGM |
| Bisichi PLC | AGM |
| Blackbird PLC | AGM |
| Darktrace PLC | GM re takeover by Thoma Bravo |
| Gresham Technologies PLC | AGM |
| ICG-Longbow Senior Secured UK Property Debt Investments Ltd | AGM |
| Intelligent Ultrasound Group PLC | AGM |
| Kooth PLC | AGM |
| Red Capital PLC | AGM |
| Science Group PLC | AGM |
| Somero Enterprises Inc | AGM |
| Wednesday 19 June | |
| Argentex Group PLC | AGM |
| Brave Bison Group PLC | AGM; vote on capital reduction |
| Clean Power Hydrogen PLC | AGM |
| HC Slingsby PLC | AGM |
| Maintel Holdings PLC | AGM |
| Octopus Renewables Infrastructure Trust PLC | AGM |
| RBG Holdings PLC | AGM |
| Team17 Group PLC | AGM |
| Videndum PLC | AGM |
| Zinnwald Lithium Ltd | AGM |
| Thursday 20 June | |
| Angling Direct PLC | AGM |
| Anglo Asian Mining PLC | AGM |
| Animalcare Group PLC | AGM |
| ASA International Group PLC | AGM |
| Balanced Commercial Property Trust Ltd | AGM including re views on strategic review |
| Block Energy PLC | AGM |
| boohoo Group PLC | AGM |
| Card Factory PLC | AGM |
| Concurrent Technologies PLC | AGM |
| Cordiant Digital Infrastructure Ltd | AGM |
| Corero Network Security PLC | AGM |
| Cykel AI PLC | GM re acquisition by Mustang Energy PLC |
| Fadel Partners Inc | AGM |
| Futura Medical PLC | AGM |
| Good Energy Group PLC | AGM |
| Gresham House Energy Storage Fund PLC | AGM |
| Henderson Eurotrust PLC | GM re merger with Henderson European Focus Trust PLC |
| Kingfisher PLC | AGM |
| Likewise Group PLC | AGM |
| LSL Property Services PLC | AGM |
| Marble Point Loan Financing Ltd | EGM requisitioned by Freestone |
| Mustang Energy PLC | GM re acquisition of Cykel AI PLC |
| Northcoders Group PLC | AGM |
| Strix Group PLC | AGM |
| Thor Energy PLC | GM re equity raise |
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