JEAN ROCHE | PANMURE GORDON
“Asos has delivered a better-than-expected set of preliminary results. Current trading is very strong and the company has revealed plans to develop a large warehouse, which has future capacity of over £1bn, taking it toward its stated aim of achieving £1bn sales in five years time. We reiterate our buy rating and 735p price target. Operating costs of £72.8m were better than we forecast, mainly because of lower staff costs.”
MATTHEW MCEACHRAN | SINGER CAPITAL MARKETS
“Results are slightly ahead of expectation and comments show confidence in both the platform and future growth initiatives. Given the backdrop and continuing growth overseas, we expect little change to forecasts. We remain marginally ahead of consensus. Asos plans to launch local US, German and French sites later this year. There is optimism in the international market. Overall the news should be well received.”
KEITH BOWMAN | HARGREAVES LANSDOWN
“They’re certainly strong results. Market consensus before was on the strong hold side – you will see some forecasts upgraded and the company has announced further investment already in its international sector.
Many of their customers being so young are outside the full impact of the credit crisis. Young people tend to go online even before they go to the high street, that is the direction things are moving in. The caution has overcome the valuation ?– as is the case with some tech based companies. But this company seems to be performing strongly.”