Citi sees risks for Australia's Premier Investments post apparel brands demerger

Myer Holdings

02/02/2025 22:22

** Citi predicts risks and uncertainties for Australian
retail billionaire Solomon Lew's Premier Investments  PMV.AX 
post the demerger of its apparel brands 
    ** PMV last month transferred its apparel brands to
125-year-old Myer Holdings  MYR.AX  in exchange of stake in MYR,
leaving it with sleepwear designer brand Peter Alexander (PA)
and school essentials brand Smiggle
    ** PMV also owns a 25% stake kitchen appliances maker
Breville Group  BRG.AX  
    ** Citi says biggest concern is over PA growth and cost
blowout; adds risks have risen for PA growth post 1H25
    ** Brokerage cuts earnings view post demerger of apparel
brands; FY25 core net profit view cut by 15.7% to A$196.8 mln
($121.19 mln), FY26 view slashed by 26% to A$182.8 mln; PMV
earned A$257.9 mln in FY24
    ** Citi hikes PT to A$26.00 from A$22.74, retains "neutral"
rating; PMV closed at A$23.88 on Friday
    ** Five of 12 analysts rate PMV "buy" or higher, while seven
rate it "hold"; their median PT is A$29.98 – LSEG data
    ** PMV down 2% this year, as of last close

($1 = 1.6239 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru; editing by Diane
Craft)
 ((Sameer.Manekar@thomsonreuters.com;))