Morningstar raises Collins Foods PT on better sales outlook

Collins Foods

28/11/2023 18:53

** Morningstar raises price target on Collins Foods  CKF.AX 
saying the restaurant operator's shares look "significantly
undervalued"
    ** Brokerage raises PT by 3% to A$14.40 from previous PT
    ** Upgrade is due to the time value of money and a
marginally better sales outlook - Morningstar
    ** Brokerage says Australian store rollout is tracking ahead
of expectations, and now sees 12 stores opening in FY24, up from
10
    ** Europe segment is performing strongly despite cost
pressure and headwinds to consumer spending - Morningstar
    ** Upgrades FY24 Europe same-store sales growth forecast to
8% from 4%
    ** Expects FY25 EBITDA margin to lift by around 140 basis
points to 12.2%
    ** Four of 10 analysts rate stock "buy" or higher, 6 "hold";
median PT is A$11.05 - LSEG
    ** Stock up 53.1% YTD, as of last close 

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