RBC says Kogan.com's acquisition of furniture business Brosa 'low risk'

Kogan.com

22/12/2022 03:23

** Analysts at RBC term Australian online retailer Kogan.com
Ltd's  KGN.AX  acquisition of online furniture retailer Brosa as
reasonably low risk 
    ** Shares in KGN jump as much as 2.1% to A$3.340
    ** Co says it has acquired Brosa's business at a
consideration of A$1.5 million ($1.01 million)  urn:newsml:reuters.com:*:nTUE66BTPK
    ** RBC says the relatively small consideration works in
benefit of KGN, also allowing the company to expand its online
furniture range 
    ** "We would not expect consensus to update estimates to
include Brosa until further clarity is provided by KGN
management on the expected level of sales/profit from Brosa"-
RBC 
    ** KGN down 62.9% this year, as of last close, vs a 4.4%
decrease in the benchmark S&P/ASX 200 index  .AXJO  
($1 = 1.4828 Australian dollars)
 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))