THG plc - Digital shovels and gold; initiating coverage on an e-commerce growth machine

Davy Research
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We are broadening our consumer coverage with the initiation of THG plc. THG is an e-commerce growth enabler with an early mover advantage. Channel checks confirm a highly relevant model backed by a commercial and pro-growth culture. Its high-growth international Beauty and Nutrition platforms are powered by a proprietary end-to-end technology stack and efficient customer acquisition model. The commercialisation of the Ingenuity platform offers significant white space for future growth and vastly broadens THG’s total addressable market. We initiate coverage with an ‘Outperform’ rating and 710p price target.