We that's just great isn't it? All yesterdays gains completely wiped off, that's the stock market for you. 🤬
D
An important day coming up.. ASOS gives a trading update on 12/01/22...This will give upward/downward momentum to Boohoo shares depending on how ASOS is doing to rectify it's supply and returns issues.. Ominously, Boohoo has still not provided a date of their trading update.
c
Compare boo to rvlv (similar business models) rvlv forward pe of 59 boo 13 price to sales rvlv 6 to boo 1 everyone on here talking fundamentals 😂 when has that mattered with growth stocks… I’m extremely confident with investing at this price
S
A positive report from ASOS has helped Boohoo today. A sea of blue in the buying and selling trades. Fully expect a rise next week too.
G
Boohoo now expects its full-year underlying earnings to grow by between 6% and 7%, compared to previous forecasts of a 9-9.5% increase. Sales are now set to grow by between 12% and 14%, far short of previous expectations of 20-25% growth. Shares in the company slumped 15% in reaction to the news.
p
Boo hoo plc , should be worth significantly more than this latest set of price drops!. It as grown to be a bigger and better sized company with better infrastructure and product mix. Plus acquisitions to add to there diversity. The share price needs to reflect this better situation, and not short term problems!!.
S
This ridiculously under priced. Markets panicking today due to the an anticipated US interest hike. Think the price will double mid 2022.
G
(Sharecast News) - Analysts at Liberum slashed their target price for shares of Boohoo, arguing that the global supply chain logjam wasn't the only factor behind the online fashion retailer's recent profit warning.
The company's excessively optimistic guidance for the back half of 2022 was also to blame, they said.
"We believe the inflated supply chain costs and weakened delivery proposition will persist for the next 12-18 months," they explained.
Hence, they slashed their estimates for Boohoo's earnings across 2022-24 by over 40%, resulting in a cut to their target price from 360.0p to 200.0p.
Higher supply chain costs were here to stay, the analysts added, telling clients that they would reset at a higher level following the pandemic.
Furthermore, they judged that the company would need to invest in prices and marketing to make up lost ground in the States and in the Rest of Europe.
In turn, that would keep its EBITDA margin below its 10% target out to 2027.
An increased rate of merchandise returns was another source of concern.
However, the analysts continued to be upbeat about Boohoo's longer-term potential and believed that it could hit its medium-term growth targets, because Chinese rival Shein's growth in the US could be in the company's favour in the long-run.
They also said they were "excited" by "developments" at Debenhams, where the opportunity was "substantial".
Changing hands on 0.6 times' their estimate for the retailer's EV/EBITDA in 2023, they believed the shares offered "good long-term value", which led them to reiterate their 'buy' recommendation.
G
Some people say this is only worth £0.58 per share which is shocking as my average cost is £2.48.
G
Boohoo is offering up to 80% discount on its clothes and it’s share price. Enjoy.
S
With growth rate of 13% over 5 years followed by 7% for the next 5 years I get a valuation of £1.54, using discount rate of 10% and terminal multiple of 13. Let me know what are your thoughts, am I being conservative or generous here
G
Deutsche Bank cut its price target on Boohoo on Friday to 230p from 370p after the fast fashion retailer warned on full-year profits a day earlier.
"Boohoo hit us with a surprise profit downgrade on the basis of lower sales outside of the UK, largely because of a combination of consumer demand and a relatively unattractive delivery proposition as well as higher costs due to higher returns and freight," DB said.
The bank said freight costs of £17m were unusual given the trends have been quite obvious over the last six months and the higher returns rate largely driven by mix was arguably to be expected.
"These sales and margin pressures may be temporary but will largely stay in place until conditions normalise," Deutsche said. "It is unclear why the returns rate should not normalise more quickly with product mix so we assume some recovery in margin for FY23E."
The bank cut its FY22 and FY23 adjusted estimates by around 35%. However, given the share price fall predicting some of these concerns, it retained its ‘buy’ rating on the stock.
G
The average free cash flow over the last 4 years was 36.5 million, times by a multiple of say 20 gives you a market cap of 731 million.
Today the market cap is 1.52 billion, so this could drop a lot more.
Can anyone else give their thoughts on the valuation?
N
Asos or boohoo ?? Any thoughts
D
if Bohoo shares price reach under £1. I will double down my position. crazy valuation. people are so short sighted.
O
As much as this investment pains me every day with this price action, I do believe in the long-term scope. A good balance sheet with a strong audience that they appeal to. I live in London and every day I see more and more posters on the tube/buses and on my way to work which have influencers promoting boohoo.
W
Insiders aren't selling Boo which gives me a lot of confidence. Their balance sheet is sound and the short term issues seem pretty miniscule. We'll be in £2.00 range by end of December or Early January.
G
Laura Hoy, equity analyst at Hargreaves Lansdown said: "Boohoo’s in a difficult position—it’s made its name selling cheap clothes at the click of a button. That means the group either has to swallow inflation costs at the expense of margins, or risk losing some of its price-sensitive customers."
M
Now we can easily see 0.50p b3cz its free falling for no reason morning Market opend it was 118 now when American Market open it went below 107 wow thats jok3 i dont see any bottom for this
M
Bought first in 20 p region in late 2014 and sold too early 150iesh few years back. Didn’t expect to get these below 100 again lol. Back in last week. Thanks
Sales are now set to grow by between 12% and 14%, far short of previous expectations of 20-25% growth.
Shares in the company slumped 15% in reaction to the news.
The company's excessively optimistic guidance for the back half of 2022 was also to blame, they said.
"We believe the inflated supply chain costs and weakened delivery proposition will persist for the next 12-18 months," they explained.
Hence, they slashed their estimates for Boohoo's earnings across 2022-24 by over 40%, resulting in a cut to their target price from 360.0p to 200.0p.
Higher supply chain costs were here to stay, the analysts added, telling clients that they would reset at a higher level following the pandemic.
Furthermore, they judged that the company would need to invest in prices and marketing to make up lost ground in the States and in the Rest of Europe.
In turn, that would keep its EBITDA margin below its 10% target out to 2027.
An increased rate of merchandise returns was another source of concern.
However, the analysts continued to be upbeat about Boohoo's longer-term potential and believed that it could hit its medium-term growth targets, because Chinese rival Shein's growth in the US could be in the company's favour in the long-run.
They also said they were "excited" by "developments" at Debenhams, where the opportunity was "substantial".
Changing hands on 0.6 times' their estimate for the retailer's EV/EBITDA in 2023, they believed the shares offered "good long-term value", which led them to reiterate their 'buy' recommendation.
"Boohoo hit us with a surprise profit downgrade on the basis of lower sales outside of the UK, largely because of a combination of consumer demand and a relatively unattractive delivery proposition as well as higher costs due to higher returns and freight," DB said.
The bank said freight costs of £17m were unusual given the trends have been quite obvious over the last six months and the higher returns rate largely driven by mix was arguably to be expected.
"These sales and margin pressures may be temporary but will largely stay in place until conditions normalise," Deutsche said. "It is unclear why the returns rate should not normalise more quickly with product mix so we assume some recovery in margin for FY23E."
The bank cut its FY22 and FY23 adjusted estimates by around 35%. However, given the share price fall predicting some of these concerns, it retained its ‘buy’ rating on the stock.
Today the market cap is 1.52 billion, so this could drop a lot more.
Can anyone else give their thoughts on the valuation?