Broker snap: Charles Stanley say 'sell' Asos

18th Jan 2010 09:51

Charles Stanley is again unimpressed by the latest trading update from online fashion retailer ASOS.Most retailers would have been delighted with the sales growth of 30% ASOS posted in the 5 weeks to 3 January and the 38% for the 42 weeks to 17 January, but Stanley believes the figures were not good enough to justify the current high rating of the shares."This highly-valued stock demands continuous upgrades to consensus estimates - this statement does not deliver one. We therefore reiterate our Sell recommendation," it said."The high rating makes the shares vulnerable to the non-delivery of continuous upgrades to consensus estimates. This, coupled with the recent investor sell-off of UK general retail stocks that did not deliver the expected earnings upgrades following strong Xmas trading, suggests to us that the stock may come under pressure," it added.