The world (wide web) is not enough, according to Berenberg, which argues to be successful retailers need a strong shop presence as well.
As sales across the UK clothing sector continue to transition online, the broker says a strong and profitable online operation is important but on its own no longer enough.
After significant investment from “bricks and clicks” retailers, Berenberg equity analyst, Michelle Wilson, believes competition for online market share in the UK has increased significantly.
“We have considered which retailers possess a sustainable competitive advantage that can drive long-term outperformance.
“ASOS, Next and SuperGroup (all rated Buy) are our long-term winners.
“We increase our price targets on ASOS (LON:ASC) 4700p (from 3,500p), SuperGroup (LON:SGP) to 1390p (1160p).
Debenhams (LON:DEB) has also been lifted to 100p (from 87p) and Marks & Spencer (LON:MKS) to 560p (395p).
Elsewhere, Ted Baker (LON:TED) reported strong sales growth for the 18 weeks to 6 June with retail sales up and wholesale soaring 38%.
That led Nomura to up its target price to 3,800p on the shares.
“We believe our forecasts are conservatively set and see upside risk to our numbers. Buy,” said the broker.
Nomura still rates Petra Diamond (LON:PDL) a buy despite a market update this morning guiding to US$430mln of FY15 revenues (June y/e) vs consensus at US$468mln.
“Market confidence in Petra has been shaken a bit recently with the "surprise" $300m notes issuance and the slightly weak operational performance, however we would still use any weakness as a buying opportunity as the outlook remains solid.”
Meanwhile, Vodafone’s (LON:VOD) share price has developed a froth on news of talks with Liberty Global. Santander reckons the rise is unwarranted.
“We downgrade our recommendation to Underweight from Hold and trim our target price to 215p from 220p per share.”
“There are significant potential synergies with Liberty Global, which we estimate to be worth £11bn.
“However, the regulatory and commercial obstacles to such a deal should be considerable, in our view.”
JP Morgan delivered a boost to Royal Mail (LON:RMG) upping its target price from 515p to 605p.
The government now holds a 15% stake of the postal group, down from 30% after last night's placement.
“The reduced government stake is positive long-term,” said JP Morgan, adding its upgrade also reflectthe unexpectedly early PNL decision to abandon its UK direct delivery ambitions via subsidiary Whistl.
Galantas Gold (LON:GAL) has finally confirmed that it has been granted planning consent to develop its underground gold mine at Omagh, Northern Ireland.
With processing and waste storage facilities already in place from the existing open pit operations, development costs will be significantly reduced.
Charles Stanley’s price target rises to 13p from 6.5p previously and buy is the recommendation.
EMED Mining’s (LON:EMED) £64.9mln funding underlines it is one of the more exciting junior mining stories around said Investec.
There are few pure copper equities available to investors, and the long term fundamentals for the commodity will help deliver value as the company ramps up output, added the broker.