Morningstar cuts fiscal earnings estimate for Australia's Endeavour, calls shares cheap
BUZZ-Morningstar cuts fiscal earnings estimate for Australia's Endeavour, calls shares cheap ** Morningstar trims its fiscal 2027 EPS estimate by 4% for Australia's Endeavour EDV.AX, on slightly lower margins in the hotels segment due to flat gaming revenue; retains long-term estimates
** The firm retains its fair value estimate of A$5.10 per share for the owner of pubs and bottle shops, says shares are cheap
** Adds the market expects group margins to stay at depressed fiscal 2027 levels for longer and forecasts margins to improve 160 basis points by fiscal 2030
** Morningstar estimates group sales growth to decelerate to 1% in September, down from 4% at the beginning of fiscal 2027
** While Morningstar expects EDV's gaming and liquor to underperform, it sees EDV taking market share in liquor and increase sales by 3%; forecasts 2% growth for its hotels segment
** 2 of 14 analysts rate the stock "buy" or higher, 3 "hold" and 9 "sell" or lower; their median PT is A$2.88, according to data compiled by LSEG
** Stock down 7.9% YTD, as of last close
(Reporting by Tejas Harish in Bengaluru)
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