Australia's Myer Holdings rises; Morgan Stanley initates with 'overweight'

Myer Holdings

06/03/2025 02:25

Updates

** Shares of department store operator Myer Holdings MYR.AX up 6.7% at A$0.8

** Morgan Stanley initiates stock with an "overweight" rating and PT of A$1.10, a 46.7% upside to its last close

** Says it thinks apparel market is underestimating Myer's ability to restore growth and profitability

** Brokerage sees pathway for MYR stock to double

** Myer acquired in January Premier Investments' PMV.AX apparel brands in exchange of stake in MYR

** MYR is in the early stages of a major turnaround and integrating the apparel brands. Execution risk is high, but if it succeeds, we think the share price can more than double — Morgan Stanley

** Stock rose as much as 8% earlier in the session

** Two analysts other than Morgan Stanley rate the stock "buy" and "hold" respectively; their median PT is A$1.05 — LSEG

** Stock has fallen 37.4% this year, as of last close

 (Reporting by Roshan Thomas and Nikita Maria Jino in Bengaluru)

 ((Roshan.Thomas@thomsonreuters.com))