|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||71.90 - 73.17|
|52 Week Range||26.47 - 81.65|
|Beta (5Y Monthly)||2.65|
|PE Ratio (TTM)||29.79|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
“They could double or even treble from here,” said one investor of Asos shares when we tipped them in 2019. That investor, Fahad Hassan of Albemarle Street Partners, made the prediction when shares in the online fashion retailer were trading at £31.43. After a savage slump to about £10 as coronavirus panic struck last spring they recovered strongly to touch £59.18 last month before slipping back to £51 now. Can they go on to the £90 we predicted? The improvement in operational efficiency we talked about then, as teething troubles at new warehouses in America and Europe were tackled, has largely come to pass, which is leading to the margin improvements we wanted to see. But the epidemic has also changed the company’s outlook. Although Asos, even as an online retailer, suffered in some ways – not least in a collapse in demand for party outfits, previously one of its strengths – it is well positioned to benefit from the deeper tides of change in retail. We have all seen how the high street has been hit and much of the damage will not be undone even as coronavirus restrictions are eased. Many big names have already disappeared, never to return. Never to return, that is to say, in the form of bricks and mortar shops. But Asos itself is in the process of taking former high street favourites and turning them, it hopes, into successful online-only brands. It bought several household names, including Topshop, Topman and Miss Selfridge, from the administrators of Philip Green’s collapsed Arcadia empire and Mr Hassan has high hopes for their potential as part of Asos. “The brands it bought had online or wholesale sales [made via concessions in department stores] of £265m a year and that is the sum that Asos paid to acquire them,” he said. “It may not sound like an extreme bargain but those brands had total revenues, including sales from physical shops, of about £1bn a year and we expect a lot of those sales to migrate online.”
ASOS PLS ADR (ASOMY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
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