THG Positioned for Growth with Strategic Demerger and Focus on Core Markets: Buy Rating Affirmed

Jefferies analyst Andrew Wade maintained a Buy rating on THG (THG – Research Report) today and set a price target of p75.00.

Andrew Wade has given his Buy rating due to a combination of factors related to THG’s strategic positioning and potential for future growth. With the completion of the Ingenuity demerger, THG is now better positioned to capitalize on its core strengths in the Beauty and Nutrition markets, which are experiencing significant growth. Additionally, the company’s focus on digital-first global brands is expected to enhance its market presence and competitiveness.
Furthermore, Andrew Wade highlights the potential for margin improvement and solid cash generation as key factors supporting the Buy rating. These financial metrics indicate a strong outlook for THG, suggesting that the company is well-equipped to overcome previous challenges and achieve sustainable growth. As external challenges have largely diminished, the underlying value and potential of THG’s equity story are likely to become more evident to investors.

In another report released on February 3, Citi also maintained a Buy rating on the stock with a £0.60 price target.