AO World PLC (LSE:AO.) shares saw some profit-taking ahead of full-year results on Wednesday, with shares down 3% on Friday after a 40%-plus rebound since the start of the year.
Investors are seemingly at odds at how far earnings will beat earlier estimates after the white goods retailer raised guidance in a trading update after the 31 March year-end.
Broker Shore Capital recently downgraded its rating to 'hold' from 'buy' as it felt there were not that many more potential catalysts for the shares - though the e-retailer's recent deal that saw Mike Ashley's Frasers take a large stake is one thing that could add positive momentum in the short term.
Back in April, AO reported positive traction from its efforts to reduce costs and improve margins.
On top of that, its prior worries about adverse effects from trading risks, continuing macroeconomic uncertainty, and a tough consumer environment have not materialised to the extent envisaged.
AO, which saw its shares rise from 90p to over 400p during the pandemic before crashing back to below 40p last year, said it expected profits to come in around the top end of the £37.5mln to £45mln adjusted EBITDA guidance issued in February.