Jefferies Lowers THG Targets, Maintains Long-Term Optimism

Overview

Jefferies analysts lowered their target prices for THG shares, reflecting the current market volatility and macroeconomic headwinds. Despite the adjustments, the firm remains upbeat about the company's long-term growth prospects, citing its strong brand portfolio and digital capabilities.

Target Price Adjustments

Jefferies reduced its target price for THG shares from 220 pence to 180 pence, citing near-term challenges such as rising inflation, supply chain disruptions, and a potential economic slowdown. The analysts noted that these factors could impact consumer spending and THG's profitability in the short term.

Long-Term Potential

Despite the target price adjustments, Jefferies maintained its positive view of THG's long-term prospects. The analysts highlighted the company's strong brand portfolio, including popular brands such as Lookfantastic, Cult Beauty, and MyProtein. They also praised THG's digital capabilities, which enable it to reach a global customer base and drive online sales growth.

Growth Drivers

Jefferies identified several key growth drivers for THG, including its focus on health and beauty, its international expansion plans, and its investment in technology. The analysts believe these factors will support THG's long-term growth and position it well to capitalize on the growing e-commerce market.

Conclusion

While Jefferies lowered its target prices for THG shares in the near term, the firm remains optimistic about the company's long-term potential. The analysts cited THG's strong brand portfolio, digital capabilities, and growth drivers as key factors supporting their positive outlook.