FTSE 250 movers: Asos back in fashion on 'buy' from Berenberg

(Sharecast News) - FTSE 250 - up 2.62% to 17,792.45 at 1615 BST.

Asos shares surged as analysts at Berenberg maintained a 'buy' on the stock and slashed their target price for the clothing retailer to 1,200.0p from 1,800.0p following the group's full-year earnings.

Berenberg said there were few surprises in Asos' full-year numbers given its post-year-end trading update. However, new chief executive José Antonio Ramos Calamonte's "frank assessment" of the current shortcomings of the business highlighted a number of issues, as well as reasons for medium-term optimism.

"The CEO has a clearly defined set of near-term priorities with the aim of enhancing the customer offer and inventory management, improving order economics and streamlining the cost base, maintaining a robust balance sheet, and refreshing the leadership team and culture," said Berenberg.

The German bank noted that a comprehensive review of the company's model had "inevitably" left some short-term unknowns, but a key positive was increased confidence in Asos' balance sheet position.

"On our revised estimates, ASOS trades on 0.3x CY23 EV/sales and 17x P/E," said the analysts, who reiterated their 'buy' rating on the stock.

Urban Logistics REIT gained after the warehouse expert said it had collected 99% of rents in the six months to September 30.

The company on Tuesday added that it had secured 12 new lettings in the period covering 470,000 sq. ft. of space, generating £4m of additional rental income.

Urban logistics said it had £122m of debt drawn in the period with Aviva Investors, fixed for 10 years at a cost of 3.8%, bringing total debt to £310m, of which 97% is hedged or fixed, and has a blended cost of 3.3% and a weighted average term of 6.4 years.

"Looking to the future, we see the potential for continued capital market turbulence, but are reassured by the continuing demand in the occupational market for our asset class. We remain well placed with our largely fixed debt cost, low LTV, and immediately available debt facilities at an attractive cost, to acquire assets when the time is right," said chief executive Richard Moffitt.

"Our strategy will continue to be based on value creation through active asset management, leaving us well-positioned in a volatile market."

FTSE 250 - Risers

ASOS (ASC) 597.50p 15.46% Molten Ventures (GROW) 285.20p 13.90% Urban Logistics Reit (SHED) 139.00p 10.76% Jupiter Fund Management (JUP) 103.40p 9.88% Warehouse Reit (WHR) 123.80p 8.98% Hipgnosis Songs Fund Limited NPV (SONG) 90.90p 7.83% Dr. Martens (DOCS) 232.00p 7.81% Blackrock Throgmorton Trust (THRG) 553.00p 6.76% HGCapital Trust (HGT) 381.00p 6.72% Target Healthcare Reit Ltd (THRL) 85.20p 6.50%

FTSE 250 - Fallers

Ferrexpo (FXPO) 107.30p -1.92% Energean (ENOG) 1,328.00p -1.63% Johnson Matthey (JMAT) 1,933.50p -0.85% Ibstock (IBST) 153.40p -0.84% Morgan Advanced Materials (MGAM) 245.50p -0.81% Bodycote (BOY) 495.00p -0.72% Babcock International Group (BAB) 268.60p -0.67% Templeton Emerging Markets Inv Trust (TEM) 132.40p -0.60% National Express Group (NEX) 161.50p -0.49% Hiscox Limited (DI) (HSX) 877.00p -0.23%