THG shares rallied on Monday, bucking the overall trend, after The Sunday Times reported that research firm The Analyst had withdrawn its short recommendation on the stock.
The Analyst, which trigged the recent collapse in the THG share price, was said to have indicated that the worst is now over for the ecommerce firm.
According to the Sunday Times, The Analyst has withdrawn its short recommendation on THG, in effect declaring that the share price has no further to fall.
The firm told its clients it was difficult to see further downside and that THG’s core beauty and nutrition businesses appeared sound, the Times said.
In October, The Analyst had recommended that clients open short positions on THG on the basis that its Ingenuity ecommerce platform was grossly overvalued. It also noted concerns around the company’s corporate governance and argued that cashflows were deteriorating.
At 1030 GMT, the shares were up 14.4% at 217.40p.
