Liberum raises price target on Boohoo after 'very positive' update

Liberum praised Boohoo for continuing to outperform after the group's management on Thursday upgraded sales growth guidance for the full-year to between 33% and 38% from 25-30%.

"This reflects the recent acquisitions of three new brands, but it is still a circa 5% point underlying increase driven by continued momentum in the core business," the broker said.

It added that earnings before interest, tax, depreciation and amortisation margin guidance was reiterated at "a healthy" 10%.

"This is another impressive update from the group - over the past year we have already upgraded our full-year 2020 profit before tax estimates by 16% - where the multi-brand, multi-geography approach is working very well," said Liberum, which reiterated its 'buy' rating on the shares.

It said all of Boohoo's brands continue to gain share in their focus markets as the company's branded, fast-fashion, lower-priced offer, supported by its test-and-repeat model "sits in a sweet spot that is driving strong growth across territories".

At 1115 BST, the shares were up 1.3% at 283.68p.