Australia's City Chic Collective rises after Citi hikes PT

City Chic Collective

24/11/2023 24:21

(Updates with share move and weekly milestone)
    ** Shares of City Chic Collective  CCX.AX  up as much as
11.9% to A$0.375, set for their best week since Aug. 4, if gains
hold
    ** Citi says CCX is demonstrating progress on its strategy
to make the business sustainable on a lower sales base
    ** Brokerage raises PT to A$0.62 from A$0.55; upgrades
rating to "Buy" from "Neutral"
    ** Analysts note that apparel and footwear co has improving
inventory levels which should be conducive to higher margins and
reduced working capital, among other reasons
    ** Citi sees key risk in whether the business can
sustainably return to full price sales given the extended
clearance activities
    ** "Better than expected cost out is increasing the
prospects that the business may be sustainable" - Citi
    ** Three of nine analysts rate stock "Buy" or higher, five
rate "Hold" and one rates "Sell" or lower; their median PT is
A$0.49 - LSEG data
    ** Stock down 29.5% YTD as of last close

 (Reporting by Shivangi Lahiri in Bengaluru; editing by David
Evans)
 ((Shivangi.Lahiri@thomsonreuters.com;))