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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Financial Services

Credit Suisse revises up target prices for ASOS, B&M, Next but demand may be subdued during the summer

Analysts said excess promotions, adverse weather and the end of government furlough schemes could be a cause

ASOS PLC (LON:ASC) and B&M European Value Retail SA (LON:BME) got a target price raise on Tuesday as Credit Suisse said their performance during the pandemic topped expectations.

The two companies’ target prices were upped to 3,600p from 3,300p and to 430p from 330p respectively.

READ: M&S gets upgrade and B&M European Value a downgrade from Jefferies

Analysts added ASOS is one of the best positioned in the current environment thanks to its online focus.

Next PLC’s (LON:NXT) stock was bumped up to 4,500p from 4,150p, however the Swiss bank expects a greater profit drop-through despite lockdowns being lifted.

“Both online demand and more recently trading post-lockdown have surprised, despite social distancing,” analysts commented.

“However, excess promotions, adverse weather and the end of government furlough schemes could all affect demand through the summer.”

Shares in ASOS dipped 1% to 3,068.7p, Next dropped 3% to 5,427.4p while B&M was flat at 375.5p at noon.

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