Search Share Prices
Goldman Sachs increases share price target for ASOS
ASOS can quadruple revenue in the next decade, Goldman Sachs analysts said as the investment bank increased its share price target for the online fashion retailer.
Goldman analysts, led by Richard Edwards, set a new price target for ASOS shares of 7,300p - up from their previous target of 6,100p.
The analysts stuck with their 'neutral' rating for the stock. At 12:44 GMT ASOS shares were up 0.5% at 7,466p.
"The ASOS investment plans, which centre on fashion-right product, technology velocity, and customer enhancements (try before you buy, ASOS Instant, same-day delivery), are delivering impressive revenue progress ... and we expect this will continue across FY18. This rate of market share gain is consistent with our longer-term view that ASOS can increase revenue 4x by 2028," the analysts wrote in a note to clients.
The Goldman analysts published their research after a 25 January trading update from ASOS that showed sales up 30% in the four months to the end of December. The company, whose market value of £6.2bn has overtaken Marks & Spencer, made no change to its full-year profit guidance.