Brokerage Morningstar sees challenging FY24 for Australia's Myer Holdings

Myer Holdings

14/09/2023 23:03

** Morningstar expects FY 2024 sales for Australia's largest
department store operator Myer Holdings  MYR.AX  to fall by 5%
    ** Brokerage maintains A$0.75 per share fair value estimate
for "no-moat Myer"
    ** Brokerage expects apparel to be one of the "more
vulnerable" retailing categories to the cyclical slowdown in
FY24
    ** We forecast falling sales and wage bill pressure to drag
Myer's fiscal 2024 underlying pretax margin to around 2% -
Morningstar
    ** Morningstar maintains fiscal 2024 net profit after tax
forecast of A$48 million ($30.89 million), or 6 Australian cents
per share, a 32% decline on fiscal 2023
    ** One of two analysts rates the stock at "buy" or higher,
one "hold"; their median PT is A$0.66 – LSEG data
    ** Stock down 5.9% YTD, as of last close


($1 = 1.5538 Australian dollars)

 (Reporting by Adwitiya Srivastava in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com;))