ASOS plc (LON:ASC) shares rose in late-morning trade on Monday after analysts at Redburn highlighted the potential for the online fashion retailer in the US.
AIM’s biggest firm (by market capitalisation) only generates around 13% of its revenues across the pond at the moment, but it has recently invested in a new £30mln warehouse in Georgia to help it expand.
Ina wide-ranging sector note, Redburn extolled the virtues of platforms such as Asos, adding that there is little competition in the States at the moment to get in the company’s way.
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“[Apparel platofrms] provide a brand such as Nike with a more premium route relative to many traditional store players, while being respectful of brand positioning and pricing,” read the note.
“In the US market there is no domestic equivalent of an Asos or Zalando that offers partnership to brands at the same sort of scale.
“This market configuration could provide an importunity for Asos, in particular, as is offering and operations could fit in well with the US market.”
The City research house said it preferred Asos over its rival Boohoo.com PLC (LON:BOO), in part because of its relationships with third-party brands such as Nike and Adidas.
Asos shares are up 1% to 6,254p, while Boohoo.com shares fell 1.5% to 203.4p.