Citi sees lack of immediate upside catalyst for Premier after Myer deal

Myer Holdings

30/10/2024 20:08

** Analysts at Citi downgrade stock rating on Australia's
Premier Investments  PMV.AX  to "neutral" from "buy"; keep PT at
A$36
    ** Australian department store owner Myer  MYR.AX  will buy
retail billionaire Solomon Lew's Premier Investments' apparel
brands business, in a deal valued at A$863.8 million ($568.38
million)
    ** Citi does not see an immediate upside catalyst for PMV
from the deal and expects some risk of sell-down as Myer shares
are to be distributed
    ** Brokerage does not see a rebound in trading conditions
for PMV just yet, so there is a lack of actionable upside to
participate in the near term
    ** Myer will issue Premier 890.5 million new shares in the
retailer under the deal
    ** PMV has risen 20.6% YTD, as of last close

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