AO Should Look Beyond Core Offering to Boost Growth, Peel Hunt Says -- Market Talk

Dow Jones2023-01-10

1131 GMT - AO World's challenge is now to show share gains beyond its main category of major domestic appliances, or MDA, says Peel Hunt in a note. "With a stable and profitable U.K. base, the wider question becomes where AO's growth comes from, as efforts to drive non-MDA sales prove more challenging without the benefit of AO's superior service proposition," the brokerage says, pointing to its other categories such as small domestic appliances, audiovisual and consumer electronics. Peel Hunt keeps its hold rating on the stock, raising its target price to 80 pence from 70 pence. Shares are up 0.6% at 70.0 pence, having hit 81.9 pence earlier in the session. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

January 10, 2023 06:31 ET (11:31 GMT)

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