Brokerages flag difficult trading environment concerns for Australia's Michael Hill International

Michael Hill International

22/07/2024 04:58

(Updates with Macquarie note)
    ** Shares of Australia's Michael Hill International's
 MHJ.AX  down as much as 3.4% to A$0.565
    ** Analysts at Citi downbeat MHJ's trading environment
    ** "Business is grappling with a difficult trading
environment in midst of rebranding" - Citi
    ** Brokerage says co's pre-reported FY24 revenue of A$641
mln($427.68 mln) is 3% below Citi's estimates
    ** Citi cuts its FY24 EBIT forecast by 23%; remains
"neutral" on co with PT of A$0.66 per share
    ** Macquarie sees near-term operating headwinds for MHJ;
lowers FY24 NPAT estimates to loss of A$1.7 mln ($1.13 mln)
    ** Brokerage reduces FY25 earnings per share (EPS)
estimates; reduces PT to A$0.81/shr
    ** Stock is down over 6% this year, as of last close

($1 = 1.4988 Australian dollars)

 (Reporting by Rajasik Mukherjee and Shivangi Lahiri in
Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com;))