ASOS PLC (LSE:ASC) shares are still a 'buy', according to stockbroker Shore Capital, which is sticking to a bullish view despite the latest trading update flagging weaker sales.
The broker has clipped its revenue assumptions but left margin targets intact, and still sees the valuation as attractive.
"We believe ASOS remains at an interesting entry point for investors; therefore retain our 'buy' recommendation," analyst Katie Cousins said.
Profit per order is higher, the broker highlighted, and also predicted that cash flow is slightly better than expected.
The Shore Cap analyst added: "As part of its strategy to create a more sustainable and profitable business model, ASOS is seeing an increased mix of higher-quality items being sold."