City Chic Collective gets PT cut, "neutral" rating from analysts on expected sales weakness

City Chic Collective

27/11/2022 23:33

** Analysts at Citi downgrade City Chic Collective Ltd's
 CCX.AX  rating to "neutral" due to concerns regarding consumer
demand hitting co's earnings in FY23
    ** Analysts at UBS reduce co's target price from A$2.00 to
A$1.10/share; retain "neutral" rating
    ** Co on Friday said it expected "continued pressure on
consumer into the second half of FY23"  urn:newsml:reuters.com:*:nASX49VXRR
    ** Citi cuts target price on co by 40% to A$1.04, yet sees
co’s longer term growth prospects as intact 
    ** Citi also cuts FY23 to FY25 NPAT outlook by A$19 mln
($12.76 mln) to A$24 mln, reflecting co's sales and margins that
are "significantly below" its expectations
    ** UBS sees co's sales to fall in FY23 with EBITDA  margins
down significantly, reduces FY23 EPS forecast by 72% 
    ** Eight of twelve analysts rate the stock "buy" or higher
and four "hold"; their median PT is A$2.40 – Refinitiv data
    ** Stock has fallen 81.9% this year, as of last close
($1 = 1.4892 Australian dollars)
 (Reporting by Poonam Behura in Bengaluru; Editing by Daniel
Wallis)
 ((Poonam.Behura@thomsonreuters.com;))