After a competitive process between M&S and Primark, ASOS has successfully completed the disposal of its mothballed Lichfield DC. Net cash proceeds of c£66m (25% of the MCAP on the day it was originally announced) reduce leverage to <1x in Aug’27. It also enhances annual FCF c£6-8m by removing onerous lease/related property costs, and reducing interest expenses. Without expanding target multiples, which the deleveraging would justify, the effect is a 10% uplift in our target price to 575p. On 3x EV/EBITDA, and with a 120% TSR, we stay at Buy.
