AO World plc

Marmite…

  • Sectors : Technology
  • Companies : AO World plc

Ratings and price correct at time of issue.

  • AO World plc

    Closing Price: 235p

  • RATING 01/01/00

  • PREVIOUS RATING N/A

DAVY VIEW

Once upon a time, people didn’t think fridges and televisions would ever be bought online. AO World (AO) – a retailer specialising in electrical goods – has innovated for 20 years and delivers a great customer experience in the UK and Germany, evidenced by market-leading NPS scores. COVID-19 has accelerated consumer adoption of the AO way, delivered FY21 revenue growth of 59% and step-changed AO’s scale. If there is a gap in the story, perhaps it is converging financial guidance with the strategic vision. Consensus 20/23 earnings growth is an impressive +38%; however, although the business has held onto the COVID gains, so has the equity – we see it fairly valued and initiate with a ‘Neutral’ recommendation.

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Sep 22 2021, 06:45 IST/BST

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