Deutsche Bank has lowered its price target for online fashion retailer Boohoo Group PLC (AIM:BOO) from 27p to 26p, maintaining a 'sell' rating on the stock.
The downgrade follows Boohoo's unscheduled trading update, which included the unexpected departure of its chief executive, a debt refinancing plan, and the company's announcement that it may sell off assets to boost shareholder value.
While there may be interest in acquiring Boohoo's popular brands, Deutsche Bank remains cautious about how much value can realistically be unlocked.
The company’s current financial pressures, coupled with the challenges of negotiating asset sales from a weakened position, dampen the bank’s outlook.
In morning trading, Booho's shares were down 1.6% at 28.74p.