Liberum improves Boohoo to “buy”



Liberum Improved actions of the fast fashion retailer Bouhou to “buy” from “hold” on Friday because he argued that the valuation deserved to pick up.

The broker said its previous “hold” rating was based on the financial impact and the long-term uncertain reputation of the supply chain review.

Liberum said it is clear from the three reports released so far by Sir Brian Leveson that Boohoo has taken the supply chain review very seriously and goes above and beyond to cover all aspects of the review. .

“The company is not committing to a one-time solution to existing issues highlighted in Alison Levitt’s QC review, but is installing systems and processes that would ensure a continuous process of review and improvement,” said he declared.

“We are pleased with the progress the company has made so far in resolving its supply chain issues, as well as shared plans for the future,” he said.

As a result, the broker believes that the current stock price is undervaluing Boohoo, as it is expected to trade at a premium to the peer group given its strong outlook for profitable growth and “huge” opportunities for trading. market.

“Although we do not yet reflect this with our target price suggesting a discount, as the road to redemption is a long way, but we fully believe that the company should start to see the benefits of the work they have done, the promises it made. made for the future and ongoing growth has nearly doubled revenue on a two-year basis. “

Liberum has a target price of 380p on the stock.


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