Australia's Endeavour drops despite broker optimism as executive exit clouds outlook

Endeavour

05/08/2025 03:05

Updates

** Shares of Endeavour EDV.AX fall as much as 2.4% to A$4.060, their biggest intraday pct loss since July 18

** Analysts at Jefferies see significant value in EDV's assets and upside in businesses from stronger execution, especially if co is split

** The owner of Dan Murphy's and BWS liquor chains said on Monday its executive chairman, Avi Mervis, has stepped down, citing disagreements with the board

** Jefferies says appointment of a strategy consulting firm to partner on co's strategy refresh is imminent, and may have been the point of disagreement with outgoing chair

** Analysts at another brokerage, Morningstar, flag the surprising change in leadership is disruptive in the near-term but say incoming CEO Jayne Hrdlicka is starting in just five months

** Morningstar estimates EDV controls about half of the Aussie liquor retailing market and emphasises on co's competitive edge against bigger retailers, including Coles COL.AX

** Jefferies has A$4.60 PT and "hold" rating while Morningstar carries a fair value estimate of A$6.10

** EDV stock down nearly 3% YTD, including day's moves

 (Reporting by Rishav Chatterjee and Rajasik Mukherjee in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com;))