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Investing.com - CLSA downgraded Fast Retailing Co Ltd . (9983:JP) (OTC:FRCOY), the $102 billion market cap retailer with a "GREAT" financial health rating according to InvestingPro, from Outperform to Hold on Wednesday, maintaining a price target of JPY51,853.00.
The downgrade comes as Fast Retailing’s shares have nearly reached CLSA’s target price following a sharp rally over the past month, according to analyst Oliver Matthew.
CLSA maintained its price target for the Japanese clothing retailer, which owns the Uniqlo brand, citing that the current risk-reward profile at 36 times forward price-to-earnings ratio "does not look attractive."
Despite the rating cut, CLSA acknowledged that Fast Retailing "has a unique moat, delivering overwhelming value to consumers" that is "not easy for others to replicate."
The research firm also noted that Fast Retailing’s competitive advantage is "likely to get stronger as the company extends its reach into US and EMEA markets."
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