Citi cuts EPS estimates on Australia's City Chic; lowers PT

City Chic Collective

08/11/2022 18:25

** Citi cuts price target on Australia's City Chic
Collective  CCX.AX  to A$1.74 from A$2.09, reflecting the
brokerage's cut in earnings estimates for the co
    ** Brokerage lowers the omni-channel retailer's FY23 to FY25
EPS outlook by 7% to 12% on the back of weaker-than-expected
margins and cost inflation
    ** Citi however upgrades rating on co to 'buy' from
'neutral' as it sees co's long-term international growth
prospects as intact and notes that the apparel retailer has
significant room to expand in the U.S. global plus size women's
clothing market
    ** Suggests that the current environment is likely
challenging from a top-line perspective, which may lead to a
disappointing AGM update later in the month
    ** CCX ended Tuesday down about 5%
    ** Seven of 11 analysts rate the stock "buy" or higher and
four "hold"; their median PT is A$2.50– Refinitiv data
    ** Stock has fallen 77.3% this year, as of last close
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))