Shore Capital has increased its price target on ASOS PLC (LSE:ASC), the online fashion retailer, to 520p from 420p, maintaining its 'buy' rating.
The upgrade implies 25% upside from the current share price of 415p.
Shares in the company have risen 46% since the start of 2026, and around 17% since Shore Capital's previous note in July.
The broker said this reflected growing confidence in the retailer's turnaround, helped by a more active investor relations effort and supportive trading data from peers including Next.
The first stages of the recovery are largely complete, with inventory levels reduced substantially and gross margins recovered materially, Shore Capital said.
Attention has now shifted towards ASOS rebuilding the customer base and returning to sustainable revenue growth, rather than simply stabilising the balance sheet.
New customer numbers grew for 13 consecutive months across ASOS's top four markets, with a 9% increase for the group in March.
The shares trade on 4.6 times forecast earnings before interest, tax, depreciation and amortisation for the 2026 financial year, falling to 3.6 times the following year, compared with a wider retail peer average of around ten times.
Shore Capital forecasts adjusted EBITDA of £158 million for the 2026 financial year, within management's guided range of £150 million to £180 million.
