Shares in Boohoo Group PLC (AIM:DEBS) fell 4% to 24p on Tuesday, giving back some of a 40% gain over the past month, as investors took profits after full-year results.
The drop came despite an upbeat reception from analysts, though the two brokers covering the stock disagreed on how much further it can run.
Panmure Liberum reiterated its 'buy' rating and 60 pence target, while Peel Hunt stuck with a more cautious hold and a 20 pence target.
The results from Boohoo, the online retailer that now trades as Debenhams, came in as expected and confirmed a positive start to the new financial year.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 35% to £53.3 million, in line with Peel Hunt's upgraded forecasts.
The Debenhams marketplace generated gross merchandise value, the total worth of goods sold, of £730 million, up about 12%.
That platform now hosts more than 25,000 partner brands and 5.7 million active customers, with management targeting £1 billion of merchandise value within three years.
Peel Hunt highlighted improving momentum through the year, culminating in a return to growth in first-quarter merchandise value, with May sales up 8%.
The broker left its forecasts unchanged, pencilling in EBITDA of about £59 million and adjusted pre-tax profit of £21.8 million.
Peel Hunt expects the shares to keep building, though its 20 pence target implies limited near-term upside.
Panmure Liberum was more bullish, arguing the turnaround had passed several inflexion points and the focus should now turn to growth.
It pointed to potential catalysts, including the sale of Boohoo's Burnley distribution centre and further growth in merchandise value.
With peak restructuring passed, Panmure Liberum expects exceptional costs to fall and free cash flow to come through.
From the 2028 financial year, the broker believes £35 million to £40 million of annual free cash flow is sustainable.
Both houses credited the group with delivering on its plans despite a difficult retail backdrop.
