ASOS has just seen its fair value trimmed slightly from £3.60 to £3.51, feeding into a lower price target of £2.40 that keeps the stock in the Neutral camp. Behind that shift is a reset in revenue growth assumptions, with the model input moving from a previously much higher figure to 35.97%, reflecting more cautious expectations for how quickly the top line may build from here. Investors who wish to monitor how these changing growth assumptions affect the ASOS narrative can follow future updates as new information becomes available.

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🐂 Bullish Takeaways

• JPMorgan keeps a Neutral rating on ASOS even after trimming its price target to 240 GBp from 270 GBp. This suggests the firm still sees a case for the shares to be held rather than avoided outright.

• The maintained Neutral stance implies analysts at JPMorgan are watching for better execution and cost control to support the investment case, rather than viewing the story as broken.

• By adjusting the target to 240 GBp, JPMorgan is signalling that, in its view, some potential upside is already reflected in the share price. However, the stock may still offer appeal if ASOS can deliver on revenue growth and margin plans.

🐻 Bearish Takeaways

• The reduction in JPMorgan’s price target from 270 GBp to 240 GBp underlines a more cautious stance on ASOS’s valuation and growth prospects, in line with the trimmed fair value estimate in the model.

• The decision to keep a Neutral rating rather than move to a more positive stance points to ongoing reservations around how quickly ASOS can grow the top line and address near term risks that could affect execution.

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• Fair Value: trimmed slightly, with the model input moving from £3.60 to £3.51.

• Discount Rate: kept unchanged at 13.19%, indicating no shift in the required return assumption.

• Revenue Growth: reduced sharply, with the input falling from a very large figure to 35.97%.

• Profit Margin: effectively flat, moving from 3.40% to 3.40% with only a very small adjustment.

• Future P/E: nudged higher, with the assumed multiple moving from 7.14x to 7.19x.

Narratives on Simply Wall St let you connect a company’s story with the numbers by tying your view on its business to forecasts for revenue, earnings and margins, and then to a fair value estimate. Hosted on the Community page used by millions of investors, Narratives help you compare fair value to the current share price and are refreshed when new information, such as news or earnings, comes in.