Broker snap: Prime Markets sees massive upside potential at ASOS

20th Mar 2013 11:39

Prime Markets has labelled online fashion retailer ASOS as a 'turbo-charged global online success story', recommending investors to 'buy'.A trading update for the second quarter on Wednesday showed a 37% rise in sales in the three months to February 28th, resulting a first-half retail sales growth of 34%.The company registered a better-than-anticipated performance in the domestic market as well as strong growth overseas. Market forecasts were for a 34% increase in sales in the second quarter, said Prime Markets' Head of Dealing, Richard Curr."The turbo-charged global online success story that is ASOS continues to deliver relentless, stellar growth numbers. Those canny punters who picked up ASOS around 2001-2002 will be sitting on a fortune - a £1k investment in 10,000 shares at 10p then would be worth £317,000 at the open price this morning," he said."Even so ASOS is today delivering exponential growth numbers to excite even the most seasoned emerging market trader, and in the view of Prime Markets continues to offer massive upside potential."In terms of technical analysis, Curr said that the stock is trading above all major support lines and with the business performing in line or better than expectations, he said this can only mean one thing - "more growth".Prime Markets expects the stock to reach its near-term target of 3,430p in the coming days.Shares were up 6.27% at 3,306p by 11:39.BC