NZ's KMD Brands falls as Morgan Stanley cuts PT on downbeat outlook

KMD Brands

27/03/2025 23:56

** Shares of outdoor clothing retailer KMD Brands KMD.NZ, KMD.AX fall 1.4% to NZ$0.355

** Stock set for its worst weekly drop in more than a month, if losses hold

** Morgan Stanley revises estimates and price target for KMD after co's interim results came ahead of pre-guidance

** However, the start to the second half was mixed, with DTC sales showing varied growth, wholesale accounts remaining cautious, and short-term gross margin percentage pressure due to increased competition - MS

** Brokerage revises EBITDA forecasts, with a cut of 40% in FY25E, 18% in FY26E, and 3% in FY27E

** Maintains an "equal-weight" rating, trims PT of ASX-listed shares to A$0.35 from A$0.50

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))