Markets can be forgiven for letting ASOS slip to a 19-year low given global events. But having transformed the model and significantly reduced costs after 3 years of heavy lifting, ASOS is already well into a major value creation phase. A strong H1 update, a small upgrade and insight from a timely meeting with senior EVPs, means confidence is growing. Lead indicators suggest a return to GMV growth is around the corner. On 3x EV/EBITDA, this is not priced in. Our 510p 12-month target price offers a c120% TSR and there is a viable roadmap to 900-1450p.
