ASOS profit and share targets clipped by JP Morgan

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ASOS PLC (AIM:ASC) has had its target price trimmed by JP Morgan, which is now predicting profits to dip in the current year.


Annual results to end August 2021 are due next month and JPM’s forecast is unchanged at GBP192mln, but in the current year (to Aug 2022) its estimate has been cut to GBP188mln against a previous forecast of GBP212mln.


Shares of the AIM-listed online retailer have fallen from around 5,200p in July as comments about margin pressures from Brexit, higher freight prices and a new warehouse at Litchfield have unsettled investors.


The bank thinks it will need evidence of improving trends in the US and elsewhere to turn things around and halt this drift in the share price.


Based on its revised earnings estimate, JPM’s price target up to February 2023 is now 6,680p from 6,800p though it kept its ‘overweight’ rating.


Shares today dropped 5.3% to 3,505p.

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