Brokerages offer mixed view on Australia's Collins Foods after dim HY results

Collins Foods

03/12/2024 22:51

** Australia's Collins Foods  CKF.AX  on Tuesday reported a
6.6% drop in its HY underlying EBITDA from cont ops with margins
impacted by flat same-store sales, inflationary pressures
    ** Morningstar expects co to recover from poor HY results,
citing tax cuts, jobs growth and monetary easing to bring back
consumer spending in the longer term; maintains fair value
estimate of A$13.50 per share
    ** Morgan Stanley raise their price target for the
restaurant operator to A$11.60 from A$11.00, forecasting a
stronger second half helped by improved divisional performance
    ** Macquarie, however, cut their price target by 1% to
A$8.20, flagging softer consumer sentiment and margin pressures
    ** 6 of 12 analysts rate the stock "buy" or higher, the rest
"hold"; their median PT is A$8.13 
    ** Collins down 30.3% YTD to A$8.25, as of last close

 (Reporting by Nichiket Sunil in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com))