(News Bulletin 247) – Deutsche Bank announced on Monday that it had lowered its price target on Asos, from 725 to 485 pence, admitting that the British online clothing group is today in a “special situation”.
The broker – which maintains a ‘hold’ recommendation on the stock – points out that the distributor, which has begun a ‘major transformation’ of its economic model, had to resign itself to calling on the lender Bantry Bay to refinance part of its debt , and this on the basis of an interest rate of 11%.
The broker recalls that Asos had to raise moreover 80 million pounds in order to lighten the burden of its debt and saw the conglomerate Fraser Group rise to 10% of its capital.
DB also evokes rumors according to which the main shareholders of Asos were approached at the end of last year with a view to filing a takeover bid of more than one billion pounds, an operation which the professional suspects of have failed.
Copyright (c) 2023 News Bulletin 247. All rights reserved.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
