THG plc - Bonfire of the vanities

Davy Research
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The unprecedented decline in THG’s equity during yesterday’s Capital Markets Day clearly indicated that the market took little comfort from the investor event, which contained less financial detail than hoped. Negative share price reflexivity now shapes the narrative, with valuation and fundamentals ranking junior to sentiment. The forthcoming trading update now takes on greater significance – with heightened focus around the Ingenuity sales ledger and broader disclosure. At the current share price, the market-implied valuation of THG Ingenuity is close to zero.