Boohoo Group PLC (AIM:BOO) has become a victim of the changing fashion landscape and needs a shake-up to stay relevant, according to Deutsche Bank analysts.
“Boohoo was synonymous with the rise of fast fashion in the UK,” analysts from the bank acknowledged in a note, thanks to offering low-cost goods online at a rapid pace.
However, heightened competition following the pandemic has given consumers more choice and the retailer has to respond.
Shares in Boohoo have fallen almost 92% since peaking at 413p during the pandemic.
Deutsche initiated its coverage of Boohoo with a ‘sell’ rating as a result alongside offering a share price target of 27p, a fifth lower than Friday’s close.
“Boohoo now needs to price more sharply and establish differentiation of its product to stay in the game and protect a position in a highly competitive market,” analysts said.
Shares fell 1.3% on Monday.