Australia's Michael Hill International falls as Macquarie cuts PT

Michael Hill International

22/01/2024 01:11

** Analysts at Macquarie lower FY24 earnings per share
estimates by 45% for Michael Hill International  MHJ.AX 
    ** Brokerage cuts target price to A$1.10/shr from
A$1.40/shr; retains "Outperform" rating
    ** Shares of MHJ currently down 3.4%, on track for worst day
since Jan. 10, if losses hold
    ** While MHJ faces near-term operating headwinds, the
magnitude of the prevailing discount to assessed fair value, the
expected recovery in gross profit margins and identified
multi-channel growth initiatives combine to support an
Outperform recommendation - Macquarie
    ** However, broker does not expect full recovery to
historical profitability levels until FY26 at the earliest
    ** Two of three analysts covering the stock rate "Buy" or
higher and one rates "Hold"; their median PT is A$1.10 - LSEG
data
        ** Stock down 1.7% YTD as of last close

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((shivangi.lahiri@thomsonreuters.com))