Missed guidance by THG PLC has undermined some of its recent "positive words and actions" and has raised investor concerns over its 2023 targets.
That's the conclusion of broker Liberum, which repeated its ‘hold’ recommendation while raising its price target for the stock by 10p a share to 55p.
THG said on Tuesday its net revenue growth for 2022 was 3.3% year-over-year, missing the guidance of 10-15% and falling short of the consensus estimate of 9%.
Full-year EBITDA guidance was cut again to £70mln-£80mln, down from £130mln-£140mln. Additionally, net debt (excluding leases) now stands at £200mln.
Liberum said it cut its full-year 2022 earnings and net debt forecasts in line with the latest guidance.
The shares, off 69% in the last year amid a series of setbacks and a slowdown in consumer spending, were down 2.7% in late morning trade at 52.06p.
THG, founded by CEO Matthew Moulding, was listed on the stock market at 500p and hit almost 800p in the aftermath of the September 2020 IPO.