RBC Capital Markets initiated coverage of The Hut Group at ‘sector perform’ on Tuesday with a 715p price target.
The bank said it reckons online market growth will continue to exceed expectations despite restrictions easing and that it views THG as well positioned to benefit with its “leading” brand positions.
“The commercialisation potential of its end-to-end Ingenuity solution offers a unique element to the equity story, although for which visibility is lower,” RBC said. “We see greater valuation upside potential elsewhere in the sector and thus initiate at sector perform.”
At 1555 BST, the shares were down 0.6% at 610.50p.
