Boohoo (LON: BOO) shareholders have had a tough time in the last few years, with the stock down significantly from its 2020 highs…
But there has been a slight rise in Boohoo shares lately, and Exane BNP Paribas upgrading the stock on Friday gave the them another boost, resulting in an 11% rise.
It follows the company’s announcement of a growth plan, which is intended to increase its market capitalisation to £5 billion over the next five years.
“This plan facilitates retention and resolutely aligns our executives’ interests with those of shareholders,” Remuneration Committee Chairman Iain McDonald said in the company’s press release.
However, it hasn’t gone down too well with some shareholders…
Nevertheless, on Friday, Exane BNP Paribas analyst Nicolas Katsapas lifted Boohoo to Outperform from Neutral with a 65p price target.
The analyst told investors in a research note that the shares are pricing in sector-low long-term margins, which are below the company’s pre-pandemic levels.
Katsapas added that BNP Paribas sees compelling value for Boohoo shares at current levels.
Based on current consumer sentiment and demand trends, we lean neutral on Boohoo…
Web traffic is stabilising after a recent drop, according to Semrush, while our consumer sentiment tracker (updated every month) is currently slightly negative, and worldwide search trends for Boohoo are edging lower, according to Google Trends.
By Sam Boughedda