In the past few sessions, ASOS’ shares fell sharply and are coming back to a significant support level.
Asos’ Surperformance ratings highlight its strong fundamentals. Sales are in an important growth momentum, +40% last year and 3.5 times 2010 ones. Moreover, analysts previsions show that this trend should continue: revenues are expected to grow by 32% in 2014. The group financial situation is sound with a positive cash position every year. Furthermore, the stock offers an interesting potential considering the average target price at GBp 6050.
Technically, in daily data, even if moving averages are still in a downtrend, the rebound that started when touching the GBp 4335 area should send the stock prices towards GBp 5185. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
Therefore, a long position could be taken at the current prices. The target will be GBp 5185 and a stop loss will be placed under the GBp 4334 support in case of a more important correction.
ASOS Plc is a United Kingdom-based global fashion retailer. The Companyâs segments include the United Kingdom, Europe, the United States and the Rest of the World. It has approximately 17 own brands, including ASOS Design, ASOS Edition, ASOS 4505, ASOS Luxe, As You, Collusion, Topshop Topman, Miss Selfridge, HIIT, Dark Future, Unrvlld Spply, Crooked Tongues, Day Social and Actual. The Company sells products across the world and has Websites targeting countries that include the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark and Poland. The Companyâs warehouse network includes four fulfillment centers and five returns centers, enabling them to provide next day delivery to the majority of its global customer base. Its Barnsley and Lichfield warehouses service both the United Kingdom and Rest of World territories, with Eurohub servicing Europe and Atlanta servicing North America.