Boohoo Group PLC (AIM:BOO) is a lot stronger business than it was 18 months ago, according to a regional stockbroker, which is home to a once top-rated retail analyst.
Shore Capital, whose team includes veteran stock picker Clive Black, has moved its recommendation to ‘buy’ from ‘sell’.
Boohoo has endured a tough year and a half amid the media and market backlash over pay and conditions at its Leicester facility.
The company has done much since to rectify the situation and has been on the charm offensive of late.
“We were delighted to be invited to meet boohoo’s suppliers at the ‘meet the makers’ event in Leicester, albeit as customers,” said Shore in a note to clients.
“The business has traditionally focused on financial discipline and had ‘laser-like’ attention on cost control, the main driver of the shortcomings in UK sourcing,” said Shore in a note to clients.
“We believe the supply chain scandal catalysed management’s attention to the internal issues, which have been tackled, and, as a result, boohoo has grown stronger.”
Boohoo shares, down 46% in the year to date, were changing hands for 186p in late trade. Shore reckons the stock is worth 345p.