This is not quite the full picture. If you go to the HL page quoted below, thne you should see a * in orange with 'full broker forecasts'. Click on that and you will see the broker forecasts over the months. Frankly there has not been much change. It is just that 8 brokers have quoted in January, with a lower number each month towards the end of last year.
Strong Buy: 100%
Today Forecast today Forecast 3 months ago 3 months ago Broker forecast thermometer
(0 of 8) Sell
(0 of 8) Neutral
(0 of 8) Buy
(0 of 8) Strong Buy
(8 of 8)
This is not a recommendation, it represents the consensus view of a basket of brokers.
(ShareCast News) - In the wake of a 30% drop in the shares over the past seven months, Citi opted to upgrade its recommendation on Boohoo.com to 'buy', setting a target price of 235p.
"We think shares and consensus forecasts now better reflect downside risk on margins as company invests for long term growth. Social media shows potential of boohoo brands," the broker said to clients in a research note.
To back up its case, the broker pointed to rival PrettyLittleThing, which had more than twice the engagement of 'Asos' or Boohoo brands.
In its opinion, that served to underline that sales had yet to scale to potential and underpinned its near-term growth forecasts.
On the other hand, the analysts trimmed their forecasts for the group's profits before tax by between 6% and 9% to better capture planned reinvestment in all group brands.
A big drop like that for a relatively good RNS.. profit is up, brands are continuing well, we got an update on US sales as well which seem to be okay
a lot to be missed here and a very good point from a previous poster, I think next results we get will show that boohoo is an all year company, as apposed to other companies who relish on Christmas and black Friday sales, boohoo like the previous poster suggested with its age range focus will probably benefit more around times of student loans and where students start to get some disposable income back
i'm excited to see what happens, i can still see this company reaching 270-300 by the end of the year..
I think the Blue Prism valuation is, to put it kindly, taking rather a lot on trust. Perhaps a more interesting comparison is with Fevertree -figures are from Stockopedia showing forecasts for ye 28 February 2018 and 31 December 2017 respectively:
T/O £548m £158m
Net Profit £30.0m £42.9m
EPS growth +32% +57%
(EPS growth last year +95.8% +106.4%)
P/E 67.3 56.6
Market cap £2200m £2430m
The forecast net profit figure for boohoo looks too low (and I don't think it has been updated since the trading update) and I would think more like £35m is achievable dropping the p.e ratio to around 57 and increasing the eps growth to about 54%. However, I suspect the net profit forecast for Fevertree is also too low.
So the two are on comparable valuations but Fevertree possibly looks a bit cheaper.
The announcement doesn't say whether it is an increase or a decrease. However, Mr Jalal Kamani held 76 million shares at 18 April 2017 or 6.81% of the share capital (according to the annual report) so this is a notification that he has dropped below the 6% mark, i.e he has sold about 10 million shares since April.
Note the requirement is to disclose when dropping through a full percentage, so if he continues to sell the next notification will be when he drops below 5%.
I gather Mr Jalal used to be involved in management and presumably retired, so it's not surprising that he wants to sell some of his shares and I wouldn't read too much into it.
Admittedly this was issued on iii on Monday prior to the Trading Update, but here it is anyway.
'Peel Hunt's picks in the retail sector include fast-growing online fashion retailers ASOS (ASC) and Boohoo. The latter's recent sell-off due to margin fears is seen as a buying opportunity, with analyst John Stevenson targeting a share price of 300p compared with 199p at the start of 2018.'
..... still substantially above here, and overweight.
Broker Forecast - Barclays Capital issues a broker note on Boohoo.com Plc
Barclays Capital today reaffirms its overweight investment rating on Boohoo.com Plc (LON:BOO) and cut its price target to 250p (from 260p). Story provided by StockMarketWire.com
I am modestly surprised at the high street results with LforLs as well as revenue growth, and beating management expectations among quite a lot of companies with notable exceptions M&S, Moss Bros and Debenhams - all rather old fashioned? Is there a message there? If so, it certainly shouldn't afect BOO.
Online fashion retailer Boohoo doubles sales over festive period
The companys PrettyLittleThing increased sales by 191% as the retailer continues to steal share from the high street
Fashion blogger Emma Hill, here in a Boohoo coat, appeals to the brands target audience. Photograph: Kirstin Sinclair/Getty Images
Thu 11 Jan 18 20.17 GMT First published on Thu 11 Jan 18 19.21 GMT
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Sales at the online fashion retailer Boohoo doubled at Christmas as young women flocked to the website for party outfits and gifts.
The Manchester-based company, which also owns the PrettyLittleThing [PLT] and Nasty Gal online brands, is winning sales from traditional high street retailers as it cashes in on a generation that shops via their mobile phones and takes style cues from social media.
Boohoo said group sales surged 100% year-on-year to £228.2m in the four months to 31 December, thanks to stellar sales during the Black Friday promotional bonanza in November.
Sales at PLT, where hundreds of new products are added to the website every day to satisfy its fashion hungry shoppers, were up 191% on the previous year.
Boohoos USP is inexpensive clothing aimed at fashion-conscious women, with its figure-hugging Lycra dresses starting at £10 while thigh-high boots cost £30. Its sharp pricing is giving high street rivals such as Primark a run for their money as it targets young shoppers with limited finances.
The standout performance by Boohoo comes as Britons finances are squeezed by slow wage growth and higher inflation, a predicament that forced them to cut back on buying almost everything other than food in the run-up to Christmas.
Boohoo co-founder sells £80m in shares as he reveals 'supersite' plan
Retailers with strong digital operations are proving to be more insulated from the downturn in consumer demand than those with large store networks to run. Earlier this week, fashion company Ted Baker also reported higher sales over Christmas thanks to a surge in online purchases.
Boohoo was set up in 2006 by Mahmud Kamani and his business partner, Carol Kane, who previously supplied high street rivals such as Primark and New Look. The duo share the role of chief executive.
Its shares have soared in value since listing on the stock exchange in 2014. When it joined the stock exchange, the companys shares were worth 50p but are now worth nearly four times that.
Charlotte Pearce, a retail analyst at GlobalData, said Boohoos brands were luring dissatisfied shoppers away from the likes of New Look, Miss Selfridge and H&M.
The group stands out compared to online rivals such as Missguided and Quiz thanks to its innate understanding of its core shopper base, its low-priced on-trend product and its well-targeted marketing and social media.
Pearce said Boohoo had relied on a campaign of heavy discounting to win customers by offering Black Friday discounts of between 30% and 60%. While its relentless discounting activity needs attention, boohoo.coms product and brand presence is clearly winning over 16-24 year old shoppers.
In a joint statement, Kamani and Kane said: We are delighted to report another set of strong financial and operational results, with record sales in the four months to December across all our brands.
The Black Friday period was our most successful ever. PrettyLittleThing has continued to deliver exceptional results and Nasty Gal is making excellent progress in its first year.
Our focus remains on the customer proposition: offering the best range of the latest fashion at affordable prices, coupled with great customer service.
Oh ... yes they have! Grants came in at the start of this week. Actually, that's got me to thinking. My daughter is not, I believe, an atypical student and, if anything, Xmas, Easter and Summer are when she spends the least (basically because she's skint until the next grant cheque comes in). So, if your brand, is aimed at the teen/student market, Xmas might not be an out and out peak period and you might actually do better than people expect during some of the normally slower periods when the students are back in university and their finances are replenished.
They're falling because although they're still growing , the "rate of growth" has dropped over the recent Black Friday and Xmas period which should be their best time. Also the key thing is that their margins have reduced and so expectations of repeating the previous stellar results have been dented. Add into this the fact that the next couple of months are historically slow for selling clothes. Oh ... and students haven't got Spring term's loan money yet.
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