AO World: Strategic Retail Partnerships and Ecosystem Expansion Underpin Buy Rating and Upside Potential

Analyst Andrew Wade of Jefferies maintained a Buy rating on AO World, with a price target of p155.00.

Andrew Wade has given his Buy rating due to a combination of factors that highlight AO World’s strategic and operational momentum. He views the newly announced partnership with Timpsons and musicMagpie as an important step in expanding AO’s presence in the mobile phone market, broadening customer reach, and strengthening the company’s proposition in device trade-ins and refurbishment. The initiative should enhance AO’s brand visibility in a high-traffic retail network, improve its credentials in circular and sustainable electronics, and make it easier for customers to unlock cash value from their existing devices.

More broadly, Wade interprets this partnership as a further indication that AO is successfully building a wider ecosystem of customer touchpoints rather than relying solely on its core online appliance proposition. He notes that the business is currently benefiting from solid double-digit revenue growth and is well positioned to capture demand from an extended consumer upgrade cycle. In addition, a fast-evolving membership program is expected to underpin recurring engagement and incremental sales over time. Taken together, these elements support his view that AO World’s shares still have meaningful upside potential, justifying his Buy recommendation.