Australia's Endeavour Group hits record low; Jefferies says strategy update 'uncertain'

Endeavour

28/05/2026 02:50

Updates with details and share moves
** Australia's Endeavour Group's EDV.AX falls 4.3% to A$2.805, posting an all-time low in its second consecutive session
** Jefferies says EDV strategy update is "sensible", but calls it uncertain due to lack of targets
** Brokerage flags company not setting earnings growth target for FY27 retail segment, their biggest profit generator
** Adds that "strategy not reliant on industry growth to deliver earnings growth"
** "Structural consumption headwinds remain, compounded by tough consumer backdrop," Jefferies says
** Endeavour, Australia's largest owner of pubs and bottle shops, plans to sell its wineries and vineyards, scale back its drinks business and cut its dividend payout to save about A$300 million ($214.17 million) by 2029
** Jefferies says its FY27 EBIT estimates for co is around 3% below Visible Alpha consensus
** Lowers PT to A$3.20 from A$3.50, rates stock "hold"
** YTD, EDV stock down 23.4%

($1 = 1.4008 Australian dollars)

 (Reporting by Rajasik Mukherjee and Keshav Singh Chundawat in Bengaluru)
 ((mailto: Rajasik.Mukherjee@thomsonreuters.com; Keshav.SinghChundawat@thomsonreuters.com))