NZ's KMD Brands falls; Macquarie, Morgan Stanley cautious on weak sales

KMD Brands

21/12/2023 03:29

(Updates with Morgan Stanley note)
    ** Analysts at Macquarie cut PT for outdoor lifestyle and
sports co KMD Brands  KMD.NZ  by ~11% to A$0.62/share on weak
sales; Morgan Stanley maintains "equal-weight" rating
    ** KMD shares fall as much as 2.7% to NZ$0.720; on track for
third straight day of declines, if trend holds 
    ** Co's group sales for the first four months of FY24 down
12.5% from last year
    ** Macquarie says sales and EBITDA were below its estimate,
reduces EPS estimate for FY24 and FY25 by 52.3% and 34.3%,
respectively 
    ** Morgan Stanley estimates 14% downside to FY24
consolidated EBITDA of NZ$114.5 mln ($71.54 mln), sees low
consumer confidence as risk
    **  Three of five analysts rate the stock "buy" or higher
and two "hold"; their median PT is NZ$0.95 – LSEG data
    ** Stock has fallen 28.2% this year, as of last close

($1 = 1.6005 New Zealand dollars)

 (Reporting by Sneha Kumar and Shivangi Lahiri in Bengaluru)
 ((Sneha.Kumar@thomsonreuters.com;))