JPMorgan cuts PT on Australia's Endeavour on market share losses, weak liquor sales

Endeavour

09/08/2024 05:10

** JPMorgan cuts price target on Endeavour Group  EDV.AX  by
3.3% to A$5.80 citing subdued liquor sales and gaming market
share losses
    ** Brokerage also downgrades stock to 'neutral' from
'overweight'
    ** However, shares of the liquor store and pub operator edge
up 0.2% to A$5.38 amidst a 1.3% rise in the benchmark index
 .AXJO 
    ** Brokerage cuts EPS forecasts by 1.7% in FY24 and 2.4% in
FY25
    ** Forecasts 1.1% decline in like-for-like food and beverage
sales in Q4 due to subdued liquor sales
    ** Adds, co's Victorian gaming market share deteriorated
further in 2H24 with full six-month impact of extended closure
hours
    ** Says co's gaming revenue declined 5.5% in H2 due to
closures, while overall Victorian pub gaming revenue grew 2.9%
    ** Avg recommendation of 14 brokerages is a 'buy;' their
median PT is A$5.86 - LSEG data

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))