ASOS PLC (LON:ASC) had its target price cut to 7,150p from 7,400p by Deutsche Bank as analysts revisited their investment case following turbulence in the share price.
The AIM-listed online clothing retailer has seen its share price fall around 9% since 11 April, after worries over costs offset a jump in first-half sales and profits in its interim results.
READ: ASOS shares drop as worries over costs counter jump in first-half sales, profits
The firm saw its retail sales grow by 27% to £1.13bn during the six months to 28 February 2018, up from £889.2mln a year ago, helping pre-tax profits rise by 10% to £29.9mln.
ASOS also said at the time that it was increasing its capex guidance to £230mln-£250mln for full-year 2018, accelerating some of its capital investment projects around the world, especially in distribution and logistics, to support the current level of growth.
The company was also rocked by the unexpected resignation of its chief financial officer, Helen Ashton, in early March.
At the time, the group said Ashton, its finance chief since September 2015, would retire from the board on April 30 but remain an employee of the company until August 31 to ensure an orderly handover.
READ: ASOS PLC’s chief financial officer, Helen Ashton to unexpectedly quit her role from next month
In a note to clients, analysts at Deutsche commented: “ASOS's recent share price moves have wiped over £0.5bn from its market capitalisation since April, driven by growth concerns”
They added: “Overall, we see a balanced risk-reward profile and maintain our Hold rating. We cut our price target to 7,150p and make small adjustments to our forecasts.”
In mid-morning trading Monday, ASOS shares were up 0.6% at 6,386p.