Australia's Endeavour Group rises as Morningstar bullish citing improving liquor sales

Endeavour

Today 02:18

Updates
** Shares of Australia's Endeavour Group's EDV.AX rise as much as 2.3% to A$3.51, their biggest intraday pct gain since July 28
 ** Morningstar views impairments as non-structural and maintains its A$5.40 fair value estimate, arguing industry discounting is unsustainable and could ultimately drive consolidation that benefits players such as Endeavour 
** The pub owner's improved sales momentum at its retail and hotel businesses may be overshadowed by rising costs, operational challenges and the need for increased investment across the business, Citi analysts say
** EDV said on Wednesday its preliminary 2026 underlying profit fell, while flagging item expenses of A$372 million ($262.63 million), most of which stemmed from impairments tied to sweeping portfolio overhaul
** Endeavour's May strategy overhaul included plans to exit wineries and vineyards, scale back drinks portfolio and reduce dividend payout
        ** Four of 14 analysts rate stock "Buy" or higher, three "Hold" and seven "Sell" or lower; median PT is A$3.20 - data compiled by LSEG
** Stock down 5.1% YTD
     
     
($1 = 1.4164 Australian dollars)

(Reporting by Roshan Thomas and Aamir Shaik Khalid in Bengaluru)
((Roshan.Thomas@thomsonreuters.com;Aamir.SheikKhalid@thomsonreuters.com))