Goldman Sachs has lowered its valuation of online retailer ASOS plc (LON:ASC) to factor in its larger than anticipated capital investment programme.
Goldman expects the firm to plough £143mln and £150mln into the business in 2019 and 2020 respectively, compared with previous estimates of £116mln and £121mln.
Tweaking his model, analyst Carl Hazeley has pulled his price target back to £58 a share from £62, but retained his ‘buy’ recommendation.
Of the 19 analysts logged as following ASOS on the Broker Forecasts site, 12 are in the Goldman camp as ‘buyers’.
Only one house has a ‘sell’ recommendation, while the remainder are ‘neutral’ on the stock.
The consensus price target, meanwhile, has gone from £41.35 six months ago to just over £50 today.
At 10.35am, the shares were changing hands for £48.54, down 1.2% on the day.