Citi resumes coverage of THG at 'buy', says beauty division underestimated

Citi resumed coverage of ecommerce group THG on Thursday with a ‘buy’ rating and 220p price target.

The bank said that amid M&A news flow, commodities and forex-driven downgrades, corporate governance debates and questions over THG Ingenuity, the market seems to be underestimating the value of the beauty division.

It said Beauty "is a very strong player in a very attractive market and, alone, could make up for the total valuation of the company".

At 0900 BST, the shares were up 3.7% at 77.24 p.