Endeavour Group rises; Citi says retail refocus, winery exit to unlock value
BUZZ-Endeavour Group rises; Citi says retail refocus, winery exit to unlock value Updates
** Shares of Australia's Endeavour Group's EDV.AX rise as much as 5.8% to A$3.035, set for their best session since late-February, 2022, if gains hold
** Citi upgrades stock to "buy" rating, says EDV's most profitable unit, retail segment has the chance of gaining a higher market share in the near term
** Earlier in May, co undertook a strategic review and said it would refocus on its retail operations, scale back its drinks business, among others
** Citi says "retail is facing well-known cyclical and structural challenges", but sees potential for improved execution and top-line performance under the new management team
** In April last year, pub owner named Jayne Hrdlicka, who successfully led Virgin Australia's VGN.AX post-pandemic recovery after taking the helm in 2020, as its new CEO
** Brokerage says co's plan to exit its wineries and vineyards is positive
** "Any successful divestment would remove a management distraction and allow for better execution in the core business" - Citi
** YTD, down ~17%, including the day's move
(Reporting by Anjali Singh, Rajasik Mukherjee in Bengaluru)
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