Australia's Cettire falls, Citi initiates coverage with 'sell'

Cettire

18/11/2024 24:36

** Shares of Cettire  CTT.AX  fall as much as 6.4% to
A$1.39, set for worst day since early Nov - if current losses
hold 
    ** Citi initiates coverage on the online retailer with
"sell" rating and price target of A$1.30 per share
    ** Broker says Cettire is facing a competitive environment
that is fundamentally much less favourable than before due to
tighter distribution channels, inventory buildup and weak demand
    ** Citi flags caution on co due to cyclical nature of
business and risks pertaining to upstream supply chain in
business model 
    ** "Between the arrival of corporate daigou player Poizon
out of China and risk of potential turnaround in Farfetch and
YNAP, the competitive environment for Cettire has fundamentally
changed for the worse" - Citi analysts  
    ** Stock has lost ~50.9% so far this year 


 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))