Market Report: City experts call time on Asos
Friday 24 January 2014
It was once only a brave investor who’d bet against fashion favourite Asos, but yesterday two City experts called time on the stock.
Goldman Sachs and Exane BNP Paribas reduced their rating of the online fashion business to neutral and Asos tumbled 529p to 6,296p. Exane said its huge share price rise – nearly 150 per cent in the past year – is a reason to change view.
Exane warned that Asos’s logistics “poses risk from short-term disruption”, while Goldman’s said evidence that launches in China and Russia have been successful is “still sometime away”. Neither disliked the Asos investment case, but called for a “pause for breath”.
Last week’s gains on the London market were wiped out as traders reacted to weak manufacturing data from the US and poor Chinese PMI figures. The FTSE 100 fell 53.05 points to 6,773.28.
The airline easyJet was one of the worst performers, down 71p to 1,672p, when it cautioned that the timing of Easter will fall outside its first half results and will affect figures.
Marks & Spencer was one of the best performers after a buy note from Exane BNP Paribas which gave it a 570p target price, and it ticked up 12.3p to 493.2p.
Huge rises in profit and sales in the third quarter for London Stock Exchange helped it up 8p to 1,862p.
Bookie Ladbrokes remained weak, continuing a poor run for the stock. Traders said rumours of a €2.5m (£2m) betting payout from bookies involving four horses with links to legendary punter Barney Curley had hurt a number of betting firms. Ladbrokes lost 3.9p to 150.7p.
Full-year profit from small-cap defence expert Chemring fell 25.2 per cent as it was hit by a slowdown in US purchases. But results were as expected and forward guidance remained unchanged so it recovered 1p to 241p.
Kurdistan oil explorers and producers were knocked by a note from Goldman Sachs and Liberum Capital on risks around taking oil out of the country. Liberum said timing of exports are uncertain and political risks remain so FTSE 250-listed Afren fell 7.4p to 154.6p, AIM-listed Gulf Keystone Petroleum edged back 1.5p to 176p and Genel Energy slipped 24p to 1,005p.
- 1 Moscow voted the world's unfriendliest city
- 2 The excuses your boss is most likely to believe when you call in sick
- 3 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 4 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
- 5 If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...