Boohoo (LON: BOO) shares gained 1% Tuesday, adding to its over 49% year-to-date rise…
The stock was boosted by an upgrade from Peel Hunt analyst John Stevenson, who lifted the stock to Buy from Add, with a 75p per share price target.
The change in analyst sentiment represents the second time in the last couple of months that Boohoo has been upgraded to a bullish rating, with Exane BNP Paribas raising it to Outperform in February.
Added to the positives for Boohoo is the recent change in consumer happiness, which recently moved into positive territory, alongside rival Asos, with retail stocks slowly finding their feet despite constant inflation concerns.
Stevenson told investors in his note that Boohoo’s margin outlook is improving, despite competition from Chinese firm Shein.
BNP Paribas told a similar story in its note last month, stating that Boohoo shares are pricing in sector-low long-term margins below the company’s pre-pandemic levels.
Nevertheless, investors should also be aware that Boohoo is one of London’s top five most shorted stocks once again after dropping out of the list for a short period.