THG is a British e-commerce retail company based in Manchester with a focus on retailing various consumer brands. But it is predominantly a brand of beauty products for beauty, wellness, lifestyle, luxury, and sports nutrition. In addition, the company also offers skincare products, makeup kits, shampoos, and conditioners. Myvegan, Myvitamin, Myprotein Pro, and MP Clothing are the company’s manufactured brands of nutrition products. Listed with the London Stock Exchange, the ticker THG (LON), the current thg share price is hovering within the price band of £61 and £64 over the past three months. The shares closed at £ 63.82 at the end of June 02.2023.
Besides Europe, the company operates in the US, the Middle East, Australia, and Asia.
thg share price movement
Since March 1, when the share price was £59.62 with a trading volume of 8,420,792, the thg share price uk occasionally peaked. Then it also peaked once in the third week of April and again in the first week of May. On April 17, while at the peak, the share price touched £95.76 shortly. After sliding down to £76.76 the next day, the price started climbing soon after to reach £98 within a week and then again moved further up to reach £116.2 on May 3. Since then, thg share price lse started a downward journey until May 15. The price showed signs of moderation, recording £61.42 on that day and maintaining a price range slightly above and below £60 from where the rise began three months ago.
A risky stock
The frequent volatility of the thg share price make it risky for investors because of the uncertainty about future price projections. It is difficult to judge the company’s value because of the business model that relies on an e-commerce platform for selling the company’s brands. It enables the third parties to use the platform for setting up and running their sales. It is to evaluate the company based on its sales or treat it as a tech firm whose valuation depends on future profits.
Much depends on the company’s performance in 2022 and what 2023 has in store for THG. The company declared its Annual Report on April 18, and it’s time to announce the results of Q1 in 2023.
Price Target and Share Forecast
The company’s annual report shows THG posted record sales of £2.2 billion in 2022. The company’s price strategy aimed at long-term customer retention impacted gross margins. The profitability was low, too, because of significant cost inflation and the challenging macroeconomic environment. Buoyed by a new term loan of £156 million, the company strengthened its cash at £640 million.
According to analysts, the average target thg share price should be £113 when projected for 12 months. The swing could be massive between 50p at the lowest level and £220 at the peak.
Despite optimism about the share price, which has shown signs of increase, investors must be ready for the intermittent falls they must endure to reach the target.
