Citi cautious, Morningstar bullish on Endeavour despite improving liquor sales

Endeavour

05/08/2026 20:52

** Australian company Endeavour Group's EDV.AX improved sales momentum at its retail and hotel businesses may be overshadowed by rising costs, operational challenges and need for increased investment across the business, Citi analysts say
** Citi also expresses concern that material increase in consulting expenses may extend beyond FY26
** 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
** 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 
** Four of 14 analysts rate stock "buy" or higher, three "hold" and seven "sell" or lower; median PT is A$3.20 - LSEG data
** Stock down 6.3% YTD


($1 = 1.4164 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))