Morgan Stanley cuts PT for Australia's City Chic on lower sales

City Chic Collective

01/06/2023 24:58

** Morgan Stanley cuts price target on Australia's City Chic
Collective Ltd  CCX.AX  to A$0.40 from A$0.60 on lower sales in
the first 19 weeks of 2H23
    ** MS says the fashion retailer's sales growth dropped from
-8% in 1H23 to -26% in the reported period 
    ** We are still attracted to CCX's long-term growth
potential, but think the cyclical headwinds are likely to
persist into FY24 - brokerage 
    ** MS downgrades co's FY23 and FY24 EDITDA forecast by
710.4% and 67.1%, respectively, on softer demand and slower
customer acquisition 
    ** Three of 12 analysts rate CCX "buy" or higher, nine as
"hold", with their median PT is A$0.46 - Refinitiv data
    ** Stock down 24.2% YTD, as of last close
 

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))