boohoo Group PLC (LON:BOO) has an attractive valuation but is trading well below historical multiples despite all the progress being made on the ESG front, according to Barclays.
The investment bank said lumpy comparatives from last year and varied lockdown conditions in different markets make “accurate forecasting somewhat challenging” for financial year 2022.
In fact, during the first quarter the online retailer saw “very impressive growth” in the UK and the US, but year-on-year declines in the rest of Europe and the world.
“Taking a step back from the most recent quarter, we think Boohoo is well placed to take advantage of the 'reopening' as lockdown conditions continue to ease across its markets – though we recognise that the process may not always be linear,” analysts said.
“The company continues to make good progress on its ESG/supply-chain-related promises, which should help rebuild confidence among investors.”
The bank has an ‘overweight’ recommendation on the stock with target price of 530p.
Shares dipped 1% to 325.8p on Wednesday morning.