Citi raises PT on Australia's City Chic Collective's sustainable business prospect

City Chic Collective

23/11/2023 19:44

** Analysts at Citi are of the opinion that City Chic
Collective  CCX.AX  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;))