Shares of Superdry PLC (LON: SDRY) plunged over 12% on Monday after the fashion retailer reported a pre-tax loss of £166.9 million, which is nearly double from last year's £89.3 million loss.
However, investors used this weakness in Superdry stock to get on the long side. Shares of the company closed nearly 9% higher yesterday before continuing the uptrend to add a further 3% today.
“The current market cap of £125m is now smaller than the value of the inventory (circa £158m) on the balance sheet. This has to be wrong considering momentum and the proven track record of this management to convert this into cash,” analysts at Liberum wrote in a note.
Liberum placed a 300p price target on Superdry stock, which currently trades at 148.6p as the buyers eye a move to intraweekly resistance at 170p.
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