Boohoo 'attractively valued', says RBC Capital

RBC Capital Markets upgraded its stance on shares of fast-fashion retailer Boohoo on Tuesday to ‘outperform’ from ‘sector perform’ and lifted the price target to 410p from 380p.

The bank said Boohoo shares are attractively valued, particularly considering the potential for consensus upgrades and the stock's relative underperformance versus Zalando and Asos.

"We also take a more constructive view on long-term margins," RBC said. "The company's steps towards improving its ESG policies are credible and over time, we expect the shares to re-rate to reflect that."

At 0920 BST, the shares were up 3.5% at 299.54p.