Boohoo.com, the online fashion retailer, is barely higher than its March flotation price, but analysts at Investec believe investors should not be unduly upset.
The company's shares are currently up 1p at 51.25p, compared to the 50p level at which shares were sold to investors. But they could be worth 85p, according to Investec's Kate Calvert. She said:
We view boohoo as a brand and design led online player with an under-rated competitive advantage in sourcing and supply chain, operating in a market with attractive structural growth globally.
The recent IPO has given boohoo the clout to accelerate a multi-stage infrastructure investment plan designed to support its longer-term £1bn sales target versus 2014 estimated sales of £109m. It also has the marketing muscle to build scale internationally, which already accounts for 36% of sales. We initiate at buy with a target price of 85p.
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