Deutsche Bank says ASOS PLC (LSE:ASC) has “regained its mojo” after four years of restructuring, with the online fashion retailer showing early signs of a return to growth.
The broker reiterated its 'buy' rating and 375p price target, implying meaningful upside from the last closing price of 250p.
Analyst Adam Cochrane said ASOS was beginning to move beyond a long transformation focused on restoring profitability, repairing its balance sheet, fixing inventory issues and repositioning the business as a more relevant full-price retailer.
“It has been a longer journey than expected but it finally appears ASOS has regained its mojo,” Cochrane said in a note.
First-half trading was largely as expected following the company’s pre-close update, with gross merchandise value down 9% year-on-year and adjusted EBITDA of £64 million.
The Deutsche analyst noted there was no change to full-year guidance at this stage, though current trading has strengthened despite the impact of Middle East disruption.
A key signal was the emergence of “green shoots” across customer growth, category momentum and margins. Womenswear, which accounts for around 75% of ASOS sales, has returned to growth in March after falling 12% in the second half of 2025 and 2% in the first half of 2026. New customers rose 9% year-on-year in March, marking the first growth since 2021, while the decline in active customers improved by around 100 basis points per month across March and April.
Cochrane also pointed to continued delivery on cost efficiencies and gross margin gains.