Boohoo and Asos Share Price Targets Cut as Barclays ‘See Downside Risks’

Analysts at Barclays lowered their price targets for struggling online fashion retailers Boohoo (LON: BOO) and Asos (LON: ASC) in a note to clients this week.

The bank revealed it has lowered its target for Asos to 300p from 355p per share, maintaining an Equal-Weight rating on the stock. Barclays cited concerns about the company's balance sheet.

“ASOS's balance sheet looks stretched into its April '26 debt wall,” wrote the bank.

The firm performed a scenario analysis on the company to determine the debt levels ASOS could support. While the balance sheet “looks just about manageable” in their base case, Barclays said, “It is clear that ASOS must deliver on modelled FCF/profitability improvements in FY24E/25E and we see downside risks.”

Asos shares are down around 15.5% this year, trading around the 356p mark. However, the stock is significantly below its 2021 highs of well over 5,000p a share.

Meanwhile, the Boohoo target was lowered to 24p from 26p per share, with Barclays maintaining an Underweight rating on the stock, describing it as a “wait and see story.”

“We expect top-line declines to stabilise in FY25 but lack visibility on Boohoo's growth /profitability into the medium-term,” said the bank.

Barclays analysts forecast Boohoo's 2026/2027 adjusted EBITDA are 5% and 8% below the Bloomberg consensus, and the bank said it sees “further downside to earnings if macro/competition gets worse.”

Based on its analysts' forecast for Boohoo's 2025 enterprise value/EBITDA, Barclays believes the “stock screens expensive.”