Boohoo Share Price Forecast July 2021 – Time to Buy BOO?

While not being one of the largest companies in its sector, Boohoo.com (LSE: BOO) has undergone some major fluctuations in recent months. The shares have risen to a high of £3.59  before falling to a low of £3. These fluctuations may allow investors to buy them at a lower price.

Boohoo.com – Technical Analysis

The financial statement from Boohoo.com reveals a market cap of £3.383 billion with total assets worth £775.9 million. Revenue for 2020 for Boohoo.com was up at £1.75 billion with a profit margin of 5.20%, compared to £1.23 billion in 2019.  At the time of writing, BOO shares are at £271.3 with a downtrend of -3.14%.

Oscillators for Boohoo.com such as  Stochastic RSI Fast (3, 3, 14, 14)(10.7), Williams Percent Range (14)(−100.0), Bull Bear Power(−37.5) and Ultimate Oscillator (7, 14, 28)(31.4) is pointing towards neutral. However, moving averages such as Volume Weighted Moving Average (20)(302.9) and  Hull Moving Average (9)(271.5) are pointing towards selling.

67% of all retail investor accounts lose money when trading CFDs with this provider.

Recent Developments

There is some concern over Boohoo’s share price, mainly because there is a chance that Boohoo.com co-founder Mahmud Kamani will be forced to produce evidence in a recent $100m lawsuit. The company was accused of faking promotions in the United States for a number of years, with customers being presented with inflated original prices.  As a result, discounts seemed greater than they actually were.  The company responded by pointing out that Kamani wasn’t involved in setting prices and thus should not be required to answer questions in court.

This headline has concerned investors as it negatively affects the company’s reputation. This isn’t the first accusation the company has faced, as it faced similar accusations over the use of countdown clocks in the United Kingdom.

Should You Buy BOO Shares?

Boohoo.com still has its backers in spite of the accusations it is facing. For instance, the share price for Bohoo.com rose last week following RBC recommending a buy action. It recently announced a partnership with MiddleEast-based Alshaya Group which runs Debenhams stores in the region.  As a result of this agreement, Boohoo.com’s brand will now feature in the stores from  Q4.

However, investors should remember that share prices could decrease if the earnings surprise doesn’t match expectations, or if the company attracts more negative press. Overall the company’s profit has grown by 28% with a net margin of 5.34%. It has thus been profitable over the past 5 years with a CAGR of 39%. Because of the Covid-19 pandemic, the growth rate has stunted a bit, with the company’s management expecting this year’s revenue by 25%. All of these advantages outweigh the risks, which is why investors can pick up these shares in the coming months.

Buy Boohoo.com Shares at CedarFX, the World’s #1 trading platform!