Morgan Stanley downgrades Australia's Endeavour Group amid challenging retail sector

Endeavour

18/07/2025 24:51

** Morgan Stanley downgrades drinks retailer Endeavour Group EDV.AX to "equal-weight" from "overweight"

** Lowers price target to A$4.60 from A$5.10, says PT cut reflects lowered earnings forecasts

** Brokerage points out the already challenging retail sector; lowers retail markets EBIT forecasts for 2H25, nearly 3% lower than consensus

** Casts doubt whether EDV can maintain FY28 EBIT guidance for its hotel arm, highlights "slower-than-expected freehold asset monetisation"

** Flags strategic uncertainty given management transition

** Thirteen analysts rate stock "hold" on average, median PT is A$4.50, per LSEG-compiled data

** EDV down 1.7% this year at A$4.13, as of last close

 (Reporting by Nichiket Sunil in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com))