Australia's Endeavour Group climbs after Morningstar backs cost cuts

Endeavour

29/05/2026 02:13

Updates with share moves
** Shares of Australia's Endeavour Group EDV.AX rise as much as 0.9% to A$2.885, their biggest gain since May 25
 ** However, the stock fell 6.8% so far this week, set for its worst week since late March
Morningstar says divesting non-core wineries and vineyards simplifies operations and reduces costs for EDV
** The investment research firm says the market is expecting structurally lower long-term cost margins for the pub operator
** Morningstar sees liquor retailing sales for co to grow in line with inflation from FY27, with younger population moderating alcohol consumption
** Says cutting dividend payout ratio provides greater flexibility in funding hotel investments for EDV
** It maintains fair value estimate of A$5.4/share for EDV, expects co's price growth to return from 2027 coupled with gains from leaner operations
** YTD, stock down 21.6%
     
($1 = 1.3965 Australian dollars)

(Reporting by Aamir Sheik Khalid and Keshav Singh Chundawat in Bengaluru)
((Aamir.SheikKhalid@thomsonreuters.com; Keshav.SinghChundawat@thomsonreuters.com))