Street View: Brokerages cautious on Australia's Endeavour amid rising costs

Endeavour

04/05/2026 19:40

** Australia's Endeavour Group EDV.AX warned on Monday fuel and freight costs linked to the Middle East conflict will push up its H2 supply-chain expenses by A$6 million to A$8 million ($4.30 million to $5.73 million)

** The liquor chain-owner also rolled out a three-year A$100 million cost-saving drive

** Co said momentum slowed late in Q3 at its hotels unit on cost-of-living pressures

MIXED SPIRITS, MUTED OUTLOOK FROM BROKERAGES

** Brokerage Jefferies cuts PT to A$3.50 per share from A$3.60 per share; retains "hold" rating

** Price investment has resulted in market share gains, but liquor category is challenged by structural and cyclical headwinds - Jefferies

** Investment research firm Morningstar sees fuel-price related cost-of-living pressures to ease with resolution of the Middle East conflict

** Brokerage Citi also reduces PT to A$3.45 per share from A$3.70 per share; retains "neutral" rating

** We assume the cost-out will help maintain (rather than grow) FY27 EBIT - Citi

($1 = 1.3955 Australian dollars)

(Reporting by Shivangi Lahiri in Bengaluru)

((shivangi.lahiri@thomsonreuters.com))