THG (LON:THG) Stock Rating Reaffirmed as Buy by Jefferies Financial Group

THG (LON:THG)‘s stock had its “buy” rating reissued by stock analysts at Jefferies Financial Group in a note issued to investors on Thursday, Digital Look reports. They presently have a GBX 60 target price on the stock. Jefferies Financial Group’s price objective suggests a potential upside of 69.30% from the company’s current price.

THG Stock Performance

THG opened at GBX 35.44 on Thursday. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 145.47. The company has a market cap of £562.38 million, a price-to-earnings ratio of -7.09, a PEG ratio of -0.08 and a beta of 2.49. The company’s 50 day moving average is GBX 30.12 and its 200 day moving average is GBX 31.28. THG has a 12-month low of GBX 25.52 and a 12-month high of GBX 52.55.

THG (LON:THG) last announced its earnings results on Thursday, September 10th. The company reported GBX (3) earnings per share (EPS) for the quarter. THG had a negative net margin of 3.73% and a negative return on equity of 16.03%. On average, equities research analysts predict that THG will post -6.72 EPS for the current year.

Key Headlines Impacting THG

Here are the key news stories impacting THG this week:

• Positive Sentiment: Profit forecast upgraded: THG now expects FY26 adjusted EBITDA of approximately £103 million, above previous expectations and market forecasts. Management cited continued momentum in its core businesses, particularly Myprotein and sports nutrition. THG Plc Upgrades FY26 Adj. EBITDA Expectations To £103 Mln; Q3 Revenue Up 1.3%
• Positive Sentiment: Nutrition performance and input-cost relief: Myprotein growth helped offset softer areas of the business, while falling whey prices are expected to improve margins. THG also indicated that it is targeting its first year of positive cash flow, strengthening the investment case. THG upgrades profit forecast as whey protein costs tumble
• Positive Sentiment: Operational momentum: UK Beauty and MP Activewear reportedly performed well, while THG Fulfil’s AutoStore technology more than doubled manual output for Footasylum, providing evidence of potential efficiency gains in its logistics division. THG upbeat as core business sees ongoing momentum
• Positive Sentiment: Analyst support: Jefferies reaffirmed its “buy” rating and maintained a GBX 60 price target, implying considerable upside from the recent trading level. Jefferies reaffirms buy rating on THG
• Neutral Sentiment: Revenue growth remains modest: Third-quarter revenue rose only 1.3%, meaning the earnings upgrade is relying more on product mix, cost reductions and margin improvement than on broad-based sales acceleration. Beauty was weaker during the quarter, adding execution risk. THG raises full year profit expectations

THG Company Profile

THG (www.thg.com) is a global innovator revolutionising how brands connect to a worldwide consumer base. We are transforming how consumer brands go to market in the digital age.

We have built a portfolio of leading digital beauty, health, wellness, and sports nutrition brands that are capitalising on the global growth opportunities, supported by the accelerating consumer shift to the e-commerce channel.

THG is home to three key divisions: Beauty, Nutrition, and Ingenuity. All brands, whether in-house or third parties are powered by our complete commerce division Ingenuity, which is a flexible and scalable offering formed of a combination of complex e-commerce technologies, physical assets, infrastructure, and brand building capabilities.

THG Beauty is home to leading online pure-play retailers for prestige beauty products and brings together global online multi-brand retail subscription boxes, owned prestige brands along with production and innovation.