Citi cuts earnings view, PT for Australia's Collins Foods, downgrades to 'sell'

Collins Foods

29/02/2024 18:48

** Analysts at Citi cut their net profit after tax (NPAT)
estimates for Australian restaurant operator Collins Foods
 CKF.AX  on lower expected sales and higher costs
    ** Brokerage also cuts PT to A$10.60 from A$11.93,
downgrades rating to "sell" from "neutral"
    ** Citi cuts FY24-26 NPAT estimates by 5%-8%
    ** Says more cautious on near term as several datapoints
suggest softer trading in Australia and cost pressures remain
elevated
    ** Collins Foods has a high exposure to "blue collar"
customers, which may have decreased frequency or stopped
ordering altogether - Citi
    ** Five of 11 analysts rate stock "buy" or higher, six
"hold"; median PT is A$11.93 – LSEG data
    ** Stock down ~7% YTD, as of last close

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))