Asos’ failed to instil Barclays with confidence that the online retailer would not need to raise equity following yesterday’s interims.
Barclays remained equal weight on the stock while lowering its target price to 500p from 625p.
Analysts at the high-street lender noted its “stretched” balance sheet because of a £500mln convertible loan note, due in April 2026, £100mln in outflows and its £350mln revolving credit facility due in November 2024.
“We continue to believe it needs to raise equity,” Barclays said.
Barclays was also less upbeat about the online retailer’s plan to sacrifice sales to improve margins, labelling it “not sustainable.”
Asos’ stock was down 7%, changing hands at 455p.