Citi downgrades Michael Hill on bigger-than-expected sales slowdown

Michael Hill International

02/06/2023 03:34

(Updates with Jarden comments)
    ** Citi downgrades Australian jewellery retailer Michael
Hill International Ltd  MHJ.AX  to "neutral" from "buy"
        ** Brokerage cuts price target to A$0.91 from A$1.28 to
reflect a greater-than-expected slowdown in sales
    ** Group sales went from positive growth over Jan/Feb 2023
to at least mid-single digit declines since - Citi
    ** "We need to see evidence that macro risks are bottoming
before turning more positive on the stock" - brokerage 
    ** Investment firm Jarden cuts PT on co's NZ-listed stock
 MHJ.NZ  to NZ$1.40 from NZ$1.50, retains "overweight" rating
        ** Jarden sees further margin contraction for MHJ as
sales come under pressure from increasing discounts offered by
peers
  
        ** ASX-listed shares trading 0.5% down, as of 0149 GMT
  
    ** All three analysts covering the stock rate it "buy" or
higher; median PT is A$1.28 – Refinitiv
    ** Stock down 14.1% YTD, as of last close

 (Reporting by Echha Jain and Sameer Manekar in Bengaluru)
 ((Echha.jain@thomsonreuters.com))