Results for Feb18 smashed expectations and guidance was universally positive, leading to upgrades of >10% as we hoped. While the shares have responded (+23%, 4 weeks), the valuation does not yet adequately capture the high growth and profit dynamics in BOO’s brands. Our detailed analysis of mix, scale economies, and automation savings supports a c10% blended EBITDA margin medium term, albeit not assumed in upgraded forecasts. Sales guidance looks conservative too and, after a “strong start” to F ....
02 May 2018
Leading e-commerce fashion brands undervalued
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Leading e-commerce fashion brands undervalued
boohoo group Plc (BOO:LON) | 35.0 0.3 2.2% | Mkt Cap: 444.3m
- Published:
02 May 2018 -
Author:
Matthew McEachran -
Pages:
3
Results for Feb18 smashed expectations and guidance was universally positive, leading to upgrades of >10% as we hoped. While the shares have responded (+23%, 4 weeks), the valuation does not yet adequately capture the high growth and profit dynamics in BOO’s brands. Our detailed analysis of mix, scale economies, and automation savings supports a c10% blended EBITDA margin medium term, albeit not assumed in upgraded forecasts. Sales guidance looks conservative too and, after a “strong start” to F ....