RBC Capital Markets downgraded fast-fashion retailer Boohoo to ‘sector perform’ from ‘outperform’ on Tuesday, slashing the price target to 150p from 330p.
The bank said it lacks confidence in the company’s top-line recovery, especially while its international proposition remains uncompetitive.
“We believe offering a competitive customer proposition is necessary in order to at least maintain market share,” RBC said.
“As such, we view boohoo as vulnerable to further market share loss.”
The bank said its price target was cut as it lowered its adjusted EBITDA estimates by around 40% “following the recent soft trading performance and outlook”.
