JPMorgan ups ASOS price target on US potential

JPMorgan Cazenove bumped up its price target for online retailer ASOS to 5,400p from 4,550p, keeping the stock at ‘overweight’.

ASOS

365.60p

15:39 15/11/24

0.00%

0.00p

FTSE AIM 100

3,528.04

15:45 15/11/24

n/a

FTSE AIM 50

3,958.88

15:45 15/11/24

n/a

FTSE AIM All-Share

728.67

15:45 15/11/24

n/a

General Retailers

4,597.92

15:44 15/11/24

-0.15%

-7.02

“As a fashion-forward pure-play with strength in own-brand, we believe ASOS is a natural winner from US trends,” the bank said.

It expects the company to shortly announce a new, larger US warehouse which it said could support a scale delivery proposition that is faster and more convenient for US customers.

In addition, it will allow ASOS to start sourcing US brands from local distributors, which will lead to lower cost prices.

“This should fund incremental price investment as well as mean that ASOS can offer key local brands to the US consumer (e.g. Nike) that are not economically viable in this market at present.

“Key brands, lower prices and enhanced delivery should boost US growth.”

At 0836 BST, the shares were up 1.6% to 4,592p.