No tears for online fashion group Boohoo.com PLC (LON:BOO) today as broker Liberum upgraded the target price on the share.
Releasing first quarter numbers, the firm nudged up its full-year sales forecast on Wednesday, after a rise in new customers.
It now expects sales for the year to grow between 25% and 30% compared to around 25% previously.
Liberum rates shares a 'buy' and targets 65p, up from 55p.
"Boohoo has seen another period of strong growth with an improving outlook to both margins and top-line," it said.
"This places Boohoo in an enviable position within the retail landscape where alongside a growing cash pile, the investment case has been improved significantly.
"We increase our forecasts today by 5%, but raise our TP by 15% reflecting a rating in parity with ASOS which is more than deserved for a business growing faster and achieving margins twice that of its largest peer."
The global opportunity for Boohoo is significant, reckons Liberum. In its core UK market, the online clothing sector is valued at £6.9bn and this market is forecast to increase 36% by 2018E to £9.4bn. Over the same time period, Boohoo is forecast to see its sales rise 96%, the broker noted.
Elsewhere, Societe Generale has upgraded Irish food group Greencore Group PLC (LON:GNC) to 'buy' from 'hold'. The target is 390p.
Meanwhile, City firm Numis looks at white goods retailer AO World PLC (LON:AO) and keeps a positive stance as annual revenue rose by a quarter but it fell into the red.
Total revenue in the year to the end of March increased 25.7% to £599.2mln as UK growth continued but group operating losses widened to £10.6mln from £2.2mln a year ago.
Retaining shares a 'buy, the broker said firm was confident that AO's leading customer proposition can support long term profitable growth in the UK and internationally.
Numis said it had raised its full year 2017 UK EBITDA forecast by 13% but, "with the group choosing to slow growth while it builds product margin and capacity, lower our estimates for Europe".
Liberum is less bullish on London based asset manager Intermediate Capital Group Plc (LON:ICP) today and downgrades the share to 'hold' from 'buy', dropping the price target to 692p from 703p.
The same broker also chips in its view on Sports Direct PLC'S (LON:SPD) Mike Ashley's appearance yesterday in front of the Commons Select Committee, where it says, he "acquitted himself well". It rates shares a 'buy' targeting 470p.
"MPs’ interest is now likely to be sated and today’s newspaper coverage the press will probably move on as well with Philip Green, due before the same committee next week likely to be the next focus of attention.
"The biggest support for the 'buy' case is share buybacks which could be highly accretive. EPS could double in five years and still leave the company with net cash," it added.