21st Aug 2015 09:58
LONDON (Alliance News) - Investec upgrades its earnings forecast for boohoo.com saying that a continuation of the online fashion retailer's strong first quarter UK performance is expected in the remainder of the first half, backed by increasing international scale.
The broker says that the benefits of a "more focused and targeted approach" should be illustrated in the first half results, which are due to be announced on September 29, forecasting a 12% rise in earnings before interest, tax, depreciation and amortisation to GBP7.6 million, but a flat pretax profit of GBP5.7 million.
Investec ups its Ebitda forecast by 5% for the full financial year 2016, and raises its full-year sales growth estimate to 31% from 24%.
The broker adds that the second half of the year should benefit from normalised timing of the Autumn/Winter launch and weaker comparatives, noting that further profit from sales upside could be reinvested into the business.
Investec reiterates its Buy recommendation on the stock and has a price target of 46.0 pence.
Shares in boohoo.com are trading up 0.5% at 28.65p Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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