Jefferies analyst Andrew Wade maintained a Buy rating on THG today and set a price target of p55.00.
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Andrew Wade has given his Buy rating due to a combination of factors that highlight THG’s positive performance and strategic progress. The company’s recent Q3 update showed significant improvements in both the Beauty and Nutrition segments, with an acceleration in their top-line growth. This positive momentum aligns with THG’s full-year expectations, reinforcing confidence in the company’s strategic initiatives.
In the Beauty segment, there was a notable sequential improvement, moving from negative growth in the first half of the year to a positive 4.2% in Q3. This growth was largely driven by strong trading in the UK and the US, with Lookfantastic achieving impressive double-digit growth. Similarly, the Nutrition segment reached double-digit growth in Q3, consistent with the company’s guidance. These developments, along with ongoing strategic investments, suggest a promising outlook for THG, justifying the Buy rating.