Citi upbeat on Australia's Kogan.com after strong second-half start

Kogan.com

26/02/2024 20:12

** Citi hikes PT on Australian online retailer Kogan.com Ltd
 KGN.AX  to A$5.50 from A$4.30, retains "sell" rating
    ** KGN reported on Monday 1H24 underlying NPAT of A$10.2 mln
($6.66 mln), a turnaround from prior year's loss of A$9.6 mln
    ** Also flagged a strong start to 2H24, with January
adjusted EBITDA trending ahead of consensus
    ** KGN advanced 23.7% on Monday, ending at A$7.570, best day
since late July 2022
    ** Citi says KGN's 2H24 update demonstrated "ability to
deliver on margins"
    ** "Came away from the result with more appreciation of how
much control KGN has over its margin as a platform business" -
Citi, adding it was concerned over KGN's competitiveness
    ** Citi hikes its FY24 core net profit estimate by 15.2% to
A$19.2 mln, and by 22.7% to A$26.6 mln for FY25 vs loss of
A$25.9 mln posted in FY23
    ** One of six analysts rate the stock "buy" or higher, two
"hold" and three "sell" or lower; their median PT is A$4.90 –
LSEG data


($1 = 1.5305 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))