Asos slumps to 18-month low
SHARES in online clothing retailer Asos hit an 18 month low yesterday after Liberum said it expected shares to fall a further 38 per cent in coming months as its first mover advantage was eroded by market competitors.
Asos’ shares have fallen 62 per cent since the start of the year in the wake of a fire at its Barnsley distribution centre and a number of profit warnings rattled investors.
“Our view remains that Asos’ first mover advantage is being eroded as the competition steps up – note Topshop has chosen to sell through Zalando, not Asos – and we do not think that Asos has a sustainable long-term competitive advantage to its business model,” said Liberum in a note on Monday, with a target price of 1,440p on the stock. Shares fell 0.17 per cent yesterday to 2,296p.