Brokers positive on Australia's Endeavour's strategy but exec. flux clouds outlook

Endeavour

04/08/2025 21:43

** Analysts at Jefferies see significant value in Endeavour Group's EDV.AX 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 reasons for chair departure not fully known and notes considerable uncertainty until new CEO starts and a permanent chair is appointed

** Adds 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 competitve 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 1% YTD

 (Reporting by Rishav Chatterjee in Bengaluru)

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