Australia's Kogan.com climbs after rival Wesfarmers closes its online retailer

Kogan.com

21/01/2025 03:58

** Shares of online retailer Kogan.com  KGN.AX  rise 6.4% to
A$5.97, their highest levels since Jan 8
    ** Citi says that the closure of Catch by conglomerate
Wesfarmers, a market competitor with similar web traffic but a
larger app user base, is a net positive for co, even though the
potential benefits may be small
    ** Brokerage suggests that only a portion of Catch's
customers will migrate to KGN as previous trends have shown
customers moving to other marketplaces such as Amazon, eBay, and
Temu
    ** Adds that while the closure reflects broader difficulties
for domestic online marketplaces facing stiff competition, it is
encouraging in the context of better momentum for the firm
    ** Maintains "sell" rating at a target price of A$4.50
    ** Stock rose as much as 6.6% earlier in the day, marking
its biggest intraday gain since Dec 18, 2024
    ** Two of 7 analysts rate the stock "buy", two as "hold" and
three "sell" or lower; their median PT is A$5.55 – LSEG data
    ** Stock gained 18.7% last year

    

 (Reporting by Kumar Tanishk in Bengaluru)
 ((Tanishk.Kumar@thomsonreuters.com;))