The Boohoo Group PLC (LON: BOO) share price has fallen 19.2% during the past month, leaving many wondering whether the decline will continue. As seen in the chart below, the fast fashion company could have fallen further but did not, as its shares recently bounced off their May lows.
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Boohoo remains a solid retail e-commerce company but has been considering the physical retail space after opening a pop-up store in London last weekend. The company is trying out its hand at physical retail but is a far cry from fully embracing the physical store concept.
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The retail e-commerce giant controls a significant portion of the UK retail landscape and has scooped up many former high-street retail entities. The company recently released its latest full-year results, where its losses fell to a mere £90.7 million.
According to most analysts, the company’s financial results indicate that the worst is over now for Boohoo, as many of them have issued notes encouraging investors to buy Boohoo shares. In addition, experts at Panmure Gordon said Boohoo provided “significant reassurance” in its latest full-year results.
The analysts increased their Boohoo price targets to 70p from 60p, which is a significant jump given that they are now trading at almost 42p. The new price targets give Boohoo’s share price room to rise by 28p or just over 66%, which is a sizeable rally.
Still, as savvy investors know, stocks rarely move higher in a straight line, and as such, we are likely to witness a move marked by significant rallies and pullbacks over the coming weeks and months if the analysts’ predictions prove correct.
Chief Executive John Lyttle said in its latest earnings results: “Over the last three years, the group has achieved significant market share gains. Looking ahead, we are investing for the future growth of this business with automation, local fulfilment capacity in the US and building global brand awareness. We will deliver sustainable returns on these investments.”
*This is not investment advice.
Boohoo share price.
The Boohoo share price has fallen 19.22% in a month. Will it keep falling?
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