Citi cuts TP, profit estimates for Australia's Endeavour Group

Endeavour

11/11/2024 18:54

** Analysts at Citi cut target price for Endeavour Group
 EDV.AX  to A$4.89 from A$5.18; sets rating as "neutral"
    ** Citi cuts FY25 to FY27 NPAT estimates for the pub
operator by 6%, driven by slower-than-expected retail sales and
softer-than-expected retail margins
    ** "While Endeavour trades at an undemanding multiple, we
don't see any signs of improving momentum in the core business
which could mean the stock remains cheap for some time" - Citi
    ** "We also see some element of strategic uncertainty given
the CEO transition," adds Citi
    ** In its Q1 trading update on Monday, co forecast H1 2025
retail operating EBIT margin in 7%-7.5% range vs 8% year ago
    ** Co announced its CEO's resignation in late-September
    ** Seven of 13 analysts rate the stock "buy" or higher, five
"hold" and one "sell"; their median PT is A$5.22 – LSEG data
    ** Stock had fallen 13.6% YTD, as of last close

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))