Today’s RNS confirms management has made measurable advances in key parts of the business, with sales growth significantly exceeding our forecast assumption. CER growth was almost 50% in the 4 months despite the volatile conditions; and Boohoo looks well placed to keep on targeting the ongoing shift to online and towards value fast fashion. Given its reinvestment objective back into price, it is on track to deliver FY expectations rather than a beat but, with Retail and also 3rd party sales gaining momentum, confidence in forecasts and the long term potential should get a boost today. We lift our 12m target price by to 44p (+10%) now using cal’17 target metrics (15x EV/EBITDA). Buy.
