City analysts are rarely so frank. All too often, they seem to succumb to the temptation to hold back their harshest words about the companies they cover, for fear of being denied access to senior management and losing touch with the corporate nuances they need to publish accurate research.
Not so Greg Lawless at Shore Capital, who didn’t hold back yesterday when he repeated his “sell” recommendation on AO World. Mr Lawless said that he found himself in a “perpetual downgrade cycle” with the online electrical appliances retailer, as he savaged his profit forecasts for the next two years.
AO World is subscale in its presence in Europe, is facing slowing growth and meatier competition in its core British market and will suffer pressure