Analyst Andrew Wade of Jefferies maintained a Buy rating on AO World, with a price target of p155.00.
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Andrew Wade has given his Buy rating due to a combination of factors that highlight AO World’s competitive positioning and customer value proposition. The company’s pricing strategy is highly competitive, especially in the UK major domestic appliances (MDA) market, where it closely matches its main competitor, Currys. AO World’s ability to monitor and adjust its prices multiple times a day ensures that its offerings remain optimally priced, which is evident from the closely matched fully-loaded prices with Currys.
Furthermore, AO World’s ‘Five Star’ Membership scheme adds significant value for customers, offering ongoing discounts and inclusive services for an annual fee. This membership program not only enhances customer loyalty but also provides discounts on white goods, which can range from 3-5% and occasionally reach up to 10%. These strategic initiatives contribute to a strong market position and underpin the Buy rating assigned by Andrew Wade.
Wade covers the Consumer Cyclical sector, focusing on stocks such as Pets at Home, DFS Furniture, and Games Workshop. According to TipRanks, Wade has an average return of 5.3% and a 54.07% success rate on recommended stocks.