LONDON - Asos shares rose by 2% on the London Stock Exchange today, following Deutsche Bank's initiation of coverage with a buy rating and a price target set at 500 pence. The endorsement comes even as Asos' stock has seen a 20% decline year-to-date (YTD).
Deutsche Bank's analysis highlighted Asos, Marks & Spencer (OTC:MAKSY), and B&M for their unique market positions after a year that witnessed a robust 25% performance in the UK retail sector.
The bank's sector analysis pointed to a positive outlook for the upcoming holiday season, with strong Christmas sales expected to round off the post-pandemic recovery phase. However, looking ahead to 2024, Deutsche Bank projects only modest growth for UK retailers.
Despite this anticipated "anaemic" growth, the bank maintains that solid margins and overall good health will characterize the sector.
Deutsche Bank's financial insights are aimed at guiding investors as they navigate the retail investment landscape. The bank's positive stance on Asos and its counterparts reflects confidence in their specific appeal within a market that has shown resilience and strength in the current year.
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