Jefferies has upgraded its rating for online fashion retailer ASOS PLC (LON:ASC) to 'buy' from ‘hold’ and has increased its share price target to 9,000p from 5,000p.
In a note to clients, analysts at the US banking firm said they view ASOS's functionality "rich digital platform" as a long-term winning model.
READ: Sales soar at ASOS, driven by “exceptionally strong” UK performance
They think ASOS has rightly been investing in its online platform and they see the company’s market-leading user experience as a key competitive advantage.
The analysts forecast continued high sales momentum driven by improving international conversion rates.
They concluded: “We forecast technology-led growth driving a 3-year sales CAGR of 26% and core value per share of 8000p.”
In morning trading, company’s shares were up 2.7% at 7,570p.