Australia's Endeavour extends losses after Citi, Macquarie cut PT

Citi Trends

12/11/2024 03:45

(Updates)
    ** Shares of Endeavour  EDV.AX  fall as much as 4.2% to a
record low of A$4.310
    ** Stock also hit a record low on Monday, falling 4.9% on
the day 
    ** Citi cuts PT for the pub operator to A$4.89 from A$5.18;
maintains "neutral" rating
    ** Macquarie reduces PT by ~17% to A$4.5, retains "neutral"
rating; cuts EPS estimates by 16%, 8% and 8% for FY25, FY26 and
FY27, respectively
    ** Citi cuts FY25 to FY27 NPAT estimates by 6%, driven by
slower-than-expected retail sales and softer-than-expected
retail margins
    ** Endeavour forecast H1 2025 retail operating EBIT margin
in 7%-7.5% range on Monday vs 8% year ago 
    ** Softer sales with greater promotional activity resulted
in operating de-leverage, leading to the downgrade in 1H25E
retail operating EBIT margin forecast - Macquarie 
    ** Seven of 13 analysts rate the stock "buy" or higher, five
"hold" and one "sell"; their median PT is A$5.03 – data compiled
by LSEG 


 (Reporting by Sneha Kumar and Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))