Australia's Redbubble Ltd falls after results, brokerage cuts PT

Articore

19/01/2022 03:28

** E-commerce retailer's shares  RBL.AX  down as much as
8.6% to A$2.12, lowest since July 17, 2020
    ** Redbubble on Tuesday reported https://www.asx.com.au/asxpdf/20220118/pdf/4552jyf59jn0xq.pdf
 HY EBITDA of A$8 mln ($5.75 mln)
    ** Morgan Stanley cuts PT on company's stock to A$2.65 from
A$6.50, downgrades rating to "Equal-weight" from "Overweight"
    ** Brokerage sees competition and cost pressures to persist
long-term; slashes FY 2022 EBITDA estimate to loss of A$11 mln
    ** Morgan Stanley sees RBL returning to positive y-o-y sales
growth by Q4 of FY22 and EBITDA profitability by FY 2023
    ** 6.9 mln shares change hands, 3.1x 30-day avg
    ** 5 of 9 analysts rate the stock "hold", and 4 "buy" or
higher; median PT A$3.59 - Refinitiv
    ** Company's shares down 29.1% this year, as of last close

 ($1 = 1.3912 Australian dollars)

 (Reporting by Aneetta Thomas in Bengaluru)
 ((Aneetta.Thomas@thomsonreuters.com))