Michael Hill's core business worth 'considerably more' than current share price - Macquarie

Michael Hill International

13/03/2023 03:25

** Analysts at Macquarie say that current share price of
Australia's Michael Hill International  MHJ.AX  undervalues the
core business and expected organic growth
    ** MHJ shares currently trading up 2.7% 
    ** Adds, co's core business is worth 'considerably more'
than current share price
    ** Analysis suggests that co's growth strategies have the
potential to add A$130 million($86.62 million) to current group
revenues - brokerage
    ** Macquarie however slashes PT on the jewelery retailer to
A$1.40 from A$1.86 on the back of liquidity constraints
    ** MHJ is showing more gross profit margin resilience than
listed peers, a trend we expect to continue - brokerage
    ** Stock has fallen ~16% this year, as of last close


($1 = 1.5008 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))