Boohoo Group PLC (AIM:BOO) has been downgraded to underweight by Barclays, which says that fashion e-commerce retailers will find it tough to maintain the performances experienced during the pandemic.
Online businesses generally also face “a laundry list of headwinds”, which include global supply chain issues, competition, and environmental, social and governance compliance.
Barclays say that while the Boohoo business isn’t broken, growth will come at a higher cost than medium term projections imply, with investment needed in overseas infrastructure a top priority.
Shares rose 0.2% to 94.1p.