Boohoo Shares (LON:DEBS) Fall Further as Barclays Cuts Price Target

Boohoo Group shares (LON:DEBS), now operating as Debenhams Group, are under renewed pressure following a price target reduction by Barclays, signaling continued bearish sentiment surrounding the company's strategic overhaul and financial performance.

The adjustment reflects growing concerns about the company's ability to navigate its transition and achieve sustainable profitability.

The share price has already experienced a significant decline, falling 56% YTD to 14.67p, and the revised price target of 13p, down from 21p, suggests analysts anticipate further downside. This negative outlook is compounded by a series of challenges the company has faced in recent months, contributing to a prevailing sense of caution among markets.

Boohoo's rebranding to Debenhams Group in March 2025, aimed at capitalizing on the established brand recognition and transitioning to a marketplace model, has so far failed to inspire confidence. The stock reached post-rebrand lows of 17.18p in July 2025, indicating that markets remain unconvinced by the strategic shift. The rebrand, intended to revitalize the company, has instead introduced uncertainty, fueling skepticism about its future prospects.

Internal conflicts have also played a role in undermining market confidence. A notable instance occurred in December 2024 when shareholders blocked Frasers Group's attempt to appoint Mike Ashley and an associate to the board. These boardroom disputes have raised concerns about corporate governance and the company's strategic direction, further impacting market sentiment.

Financial performance continues to be a key concern. Boohoo reported a net loss of £244.20 million over the trailing twelve months, highlighting the challenges in achieving profitability. The company's price-to-book ratio of approximately 1.9x suggests potential overvaluation relative to its assets, while a price-to-sales ratio of 0.2x reflects diminished market confidence in its ability to convert sales into profits. These financial metrics, coupled with analyst downgrades, have collectively contributed to a bearish outlook for the stock.

The combination of strategic uncertainties, boardroom conflicts, and financial headwinds has created a challenging environment for Debenhams Group.

Barclays' decision to lower its price target underscores the prevailing bearish sentiment, reflecting concerns that the company's turnaround efforts may face significant obstacles.