That stock News

Questor says hold

Yesterday, the company said sales increased by 50pc over six months to 30 September. It is above 35pc to its full year-March sales growth. Stock of the company has also recently turned.It was oscillating about 630 p has a closed last night an.La to ￡ modulation.

ASOS came certainly a long way since this momentum as As Seen On Screen in 2000, sell clothing versions which focused on the TV stars.

But are actions of asos - which now sells the label own clothes as well as trademarks such as fuel diesel, mango and Toussaint - worth buying?

We rate as a wedge.

The city is divided into the potential of the asos.De many analysts believe that his actions have increased too, and business assessment is too high.It has annual sales of ￡ 223 million last year and its market capitalization is a ￡ 924 m finesse.

Investec Securities was a recommendation to sell on asos and believes that its value is "unsustainable".KBC Peel Hunt has also has a recommendation for sell and believes that actions have run too far: "still see us the scope of the outperformance in the third quarter, but expect forecasts market remains largely unchanged [after the publication of the results of yesterday]." While asos offers significant potential for global growth, the actions executed too we. ?

Week last Altium Securities downgraded asos "purchase" to "wait".Analyst Philip Dorgan said that "purely because his actions run in advance of our target price" stock downgraded broker.

"We see the shares is higher in the next six months, but we would like to see a little more delivery - and ASOS is still only a small not on the path towards its goal of sales of ￡ billion,", said Mr. Dorgan.

And friction .the ' half the town see asos potential to grow even bigger.In recent weeks, she launched the United States France and the Germany.The UK is only 3pc global internet traffic.Management of the asos want to capture as much 97pc rest possible.La society was just four years to achieve its goal of sales of ￡ billion.

Bulls, Panmure Gordon said: "management cautiously await all year 2011 results to conform to expectations, but we believe that the company can do better, even taking into account the double operating costs for the new warehouse 2 million books-3 m".

Citi is also positive: "across the opportunity aggressive ￡ billion sales target management and leading-edge sector [earnings per share] growth opportunities, we support asos should maintain a premium multiple beyond 2012, conduct our"buy"rating". ""

If what we believe? Questor would follow the advice of Mr. Dorgan and maintain actions for the next six months, but then consider taking profits.

We wonder how asos stunning growth in sales can continuer.Et we find in the annual report of last year that operating costs increased by 26pc in his last year complète.alors that costs fell as a percentage of sales fell, it is a significant increase in overhead costs for any business, however amazing sales sont.Cale.

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