THG’s (THG) “Buy” Rating Reiterated at Jefferies Financial Group

THG (LON:THG)‘s stock had its “buy” rating restated by Jefferies Financial Group in a research report issued to clients and investors on Thursday, Digital Look reports. They presently have a GBX 60 target price on the stock. Jefferies Financial Group’s price objective would suggest a potential upside of 69.30% from the stock’s previous close.

THG Stock Performance

Shares of THG stock opened at GBX 35.44 on Thursday. The firm has a 50-day moving average of GBX 30.12 and a 200-day moving average of GBX 31.28. The company has a market cap of £562.38 million, a P/E ratio of -7.09, a P/E/G ratio of -0.08 and a beta of 2.49. The company has a debt-to-equity ratio of 145.47, a current ratio of 0.89 and a quick ratio of 0.89. THG has a one year low of GBX 25.52 and a one year high of GBX 52.55.

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

Key THG News

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

About THG

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.