Boohoo Group PLC (LON:BOO) saw its target price raised to 390p from 350p by Credit Suisse, which also maintained an ‘outperform’ rating on the stock, as its analysts highlighted strong consumer interaction for the online fast-fashion retailer despite the coronavirus crisis.
In a note to clients, the Swiss bank's analysts pointed out that Boohoo saw the smallest decline among peers in March website traffic compared to November numbers. They also noted that consumers spent around 25% more time on the fashion retailer’s website than on those of its competitors.
READ: Boohoo sees growth in April sales after March plunge as full-year profits, revenues jump
The analysts said they think Boohoo is set to benefit from its large social media presence, its ability to clear stock compared to high street peers, and opportunities to gain market share in the US, as well as the scalability of its new high-end brands.
They noted that downside risks, however, are longer lockdowns in key markets, weak consumer confidence in the short-term, and general behaviour turning against fast-fashion.
Boohoo shares jumped 7% to 352.85p on Tuesday afternoon.