In a report released today, Andrew Wade from Jefferies maintained a Hold rating on boohoo group Plc (BOO – Research Report), with a price target of p30.00.
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Andrew Wade has given his Hold rating due to a combination of factors impacting boohoo group Plc. The company has announced a strategic shift, rebranding as Debenhams Group, which reflects a transition towards a more capital-efficient and higher-margin business model. Despite this strategic pivot, the company’s Youth Brands have experienced a significant decline in revenue, with a notable reduction in forecasted EBITDA for FY25, indicating a challenging trading environment.
Furthermore, while the Debenhams segment shows promising growth in gross merchandise value and improved EBITDA margin guidance, the overall revenue growth remains modest. Additionally, the pure platform component of the business is relatively small, which could limit the potential for substantial revenue expansion. These mixed signals contribute to the Hold rating, as the company navigates through its restructuring phase while facing both opportunities and challenges.