Broker tips: Asos, Sinclair, Booker

19th Sep 2013 11:31

Online fashion retailer Asos impressed investors on Thursday as it beat fourth quarter forecasts to wrap up the year in style.The AIM-listed company lifted retail sales 47% to £208m in the fourth quarter to produce a 40% increase to £754m for the full year, supported by rapid growth in Europe and the US. Jefferies International recommended a 'buy' rating and a target price of 6,200p following the report."The trading update today demonstrated robust revenue growth, +46.4% for the fourth quarter, +33% for the first half - ahead of consensus expectations for full year (FY) 2013 at +37%. The 1:5:5 aspiration very much in play, drives consensus FY15 earnings per share to 86p," the broker said. Sinclair IS Pharma was issued a 'buy' rating by Jefferies International after reporting a jump in pre-tax profit for the full year 2013.Adjusted profit before tax and exceptional items soared 69% to £4.3m as sales rose 7.7% to £55.4m, driven by aesthetic non-surgical facelift products. "Strong growth of aesthetic brands and partners' revenues from Asia/MENA [Middle East and North Africa] offset the challenging European Union environment, which together with substantial operating leverage drives adjusted earnings before interest, tax, depreciation and amortisation [EBITDA] 15% ahead of our estimate," Jefferies said, issuing a target price of 48p.However, the broker said the company's outlook was "vague" with management saying they expect European Union growth to accelerate and international operations and aesthetics to be the primary top-line drivers. "No specific like-for-like revenue or profitability targets are outlined in the press release," the broker added.Booker Group's shares rose as Investec reiterated a 'buy' rating for the UK food wholesale operator as it reported its interim results. Total sales in the 24 weeks to September 13th, including cash-and-carry wholesaler Makro, rose by 16.5% on the same period last year, as the warm summer weather boosted customer numbers. "We expect continued progress from the core Booker business, and are looking for around 8% profit before tax (PBT) progress in the first half - i.e. PBT of £55m," Investec said. "This implies earnings per share of 2.55p after accommodating the extra shares issued for Makro."The broker said cash performance has been "excellent", with net cash at the end of the half of £123m, including £12m from two sale and leasebacks.