- Bank of America Merrill Lynch upgrades Boohoo and ASOS
- UBS downgrades Crest Nicholson to ‘Sell’
- RBC Capital Markets raises target price on Burberry
- Deutsche Bank upgrades Associated British Foods to ‘Buy’
Bank of America Merrill Lynch upgrades Boohoo and ASOS
Bank of America Merrill Lynch has upgraded Boohoo LON:BOO to ‘Buy’ (Neutral). As part of a wider European Retail review, The broker also upgraded ASOS LON:ASC to ‘Buy’ (Underperform) stating “…all companies in our coverage have implemented cost-savings measures, and several of the macro-related headwinds we recently saw – freight, raw materials, energy, inventory glut – are reversing.” The broker added that expectations for the stocks look fair “on a sector trading at very low levels”.
At the time of writing, Boohoo shares were trading at 44.17p, i[ 19.6% for the year to date and -56.9% over the last 12 months. ASOS shares were trading at 771.50p, an increase of 44.9% on the year to date and -65.6% on the last 12 months.
UBS downgrades Crest Nicholson to ‘Sell’
UBS downgraded housebuilder Crest Nicholson LON:CRST on Friday to ‘sell’ from ‘neutral’ maintaining its target price of 210p. The Housebuilder has been on a good run of late but the broker notes the unfavourable risk/reward for investors stating “In a scenario where house prices materially decline Crest Nicholson appears the most at risk of land impairments given its lower margins (15% versus sector circa 20%),”
The Crest Nicholson share price at the time of writing was 244.25p, an increase of 0.2% on the year to date and -20.3% over the last 12 months.
RBC Capital Markets raises target price on Burberry
RBC Capital Markets raised their target price on fashion brand Burberry LON:BRBY to 2,070.0p (1,800.0p) on Friday, maintaining its ‘Sector Perform’ rating. The broker cited a “sensible revenue target” as part of the group’s revised strategy, commenting that “The stock offers valuation support, and with benefit of new leadership, creative director and strategy, we think the business could re-rate if successfully executed.”
Burberry shares were trading at 2356p at the time of writing, up 14% for the year to date and +26.5% on the previous 12 months.
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Deutsche Bank upgrades Associated British Foods to ‘Buy’
Deutsche Bank has upgraded its recommendation for Associated British Foods LON:ABF to ‘Buy’ (Hold) on the back of improving strength of the Pound and an easing of energy headwinds. The broker also noted that its “Primark unit was likely to improve its margins, benefiting from both trading down and new space growth”,
Associated British Foods was trading at 1841p at the time of writing, up 13% in 2023 and -8% for the last 12 months.
