Australia KFC operator Collins Foods extends gains as brokerages raise PT

Collins Foods

25/06/2025 03:44

Updates with comments from Morningstar and share moves

** Shares of Australian KFC operator Collins Foods CKF.AX rise 12.2% to A$9.555, set for their fourth consecutive session of gains, if current momentum holds

        ** Citi increases PT by 6% to A$10.13, while maintaining "buy" rating

        ** CKF has been relatively conservative in setting guidance of low-to-mid teen underlying NPAT growth in FY26 - Citi

        ** Brokerage sees KFC Australia business' EBITDA at A$236 mln ($153.35 mln) in FY26, up 6% YoY

        ** Morningstar increases CKF's fair value estimate by 4% to A$14, citing "shares remain materially undervalued"

        ** Trims LFL sales growth and margin assumptions in both Australia and Europe to reflect lingering consumer caution

        ** However, brokerage expects a rebound in discretionary spending through FY26-FY27

** Stock has YTD gains of 30.4%

($1 = 1.5389 Australian dollars)

 (Reporting by Sherin Sunny and Kumar Tanishk in Bengaluru)

 ((Sherin.Sunny@thomsonreuters.com;))