Australia's Redbubble extends losses after announcing job cuts; UBS cuts PT

Articore

19/01/2023 04:01

** Shares of online marketplace provider Redbubble Ltd
 RBL.AX  extend losses to second straight session, falling as
much as 4.0% to A$0.485
    ** RBL hits lowest level since Oct 28, 2022
    ** Co on Wednesday announced it will cut 20% of its
Redbubble marketplace workforce as part of cost reduction
initiatives 
    ** UBS analysts say risks remain elevated for RBL with
potential revenue growth being impacted by headcount cuts 
    ** UBS cuts PT on stock to A$0.55 from A$0.60, maintains
"neutral" rating 
    ** Also downgrades FY23 EBIT forecast by 29% but raises FY24
forecast by 10% due to the cost reduction initiatives
    ** Morgan Stanley says consumer conditions "increasingly
challenging" and co's suspension of brand investment raises
concerns around driving customer loyalty
    ** One of nine analysts rate the stock "buy" or higher and 
eight "hold"; their median PT is A$0.70 - Refinitiv Data
    ** Shares of co are down 2.9% YTD, as of last close 
 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))