Investors seriously misunderstand what’s going on at online retail platform THG or the Hut as its better known, according to brokers at Liberum.
The beleaguered group, which yesterday appointed ex-ITV head Charles Allen as its new chairman, is worth 700p a share according to the mid-cap broker, or over 700% more than the current price.
Allen’s appointment, following a raft of other improvements to the group’s corporate governance structures last year, “addresses nearly all the concerns previously raised,” said the broker in a note.
“What we find anomalous with the valuation, is that the fundamentals of the group are better than at the time of the IPO,” it added.
The 90% decline in the share is excessive, it added, and the current distressed level valuations will surely “see some sort of corporate activity on the horizon”.
Liberum though seems to be lone voice at the moment as the shares fell another 3% today to 86.7p.