Analysts have encouraged investors to buy shares in Boohoo after declaring "the worst is over" for the fashion giant.
The Manchester-headquartered group has been hit with a series of issues since the height of the pandemic such as supply chain issues and rising costs.
However, experts at Panmure Gordon said Boohoo provided "significant reassurance" in its latest full-year results despite it falling to a pre-tax loss of £91m.
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As well as encouraging investors to buy up shares, the analysts have also increased their target price from 60p to 70p.
Boohoo's shares are currently trading at 45p, giving it a market capitalisation of just under £560m.
Panmure Gordon analysts Tony Shiret and Georgia Pettman said: "The Boohoo prelims gave evidence of control and stabilisation which now prompt us to dismount from the fence.
"Boohoo has never, in our view, been very transparent on its buying model. But the company's conviction that it is now able to return to a full-on test-and-repeat buying model should allow it to function properly as a sales driving machine.
"Additionally, the new US distribution centre will be absolutely key for moving the US sales into a higher level.
"Much of the focus on the day was on the lack of surprise and the cashflow/working capital control. But we are now thinking more about the medium/longer term prospects as Boohoo can work against a much more favourable supply chain backdrop where previously it struggled with both demand and supply issues.
"This said, near-term trade remains weak, there is clear execution risk with the US distribution centre and the company's view of recovered EBITDA margin prospects at 6-8% looks some way below historic levels.
"But we think the worst is over here and Boohoo has protection from demand pressures from its ability to invest falling input costs into price."
They added: "The medium-term targets of double-digit sales growth and 6-8% EBITDA margin will, in our view, need to be explained in the case of the latter and demonstrated in the former before investors can become markedly more positive on long-term valuation.
"But we think there is plenty of upside in the near-term given the significant reassurance provided by these results and the management's much more positive demeanour.
"Boohoo is again beginning to demonstrate a superior model and investment characteristics to still-troubled Asos in our view."
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