Morningstar considers Myer's stock drop after annual results a market overreaction

Myer Holdings

23/09/2025 19:57

** Morningstar says Australia's Myer MYR.AX stock drop after annual results on Tuesday was a market overreaction to a tough year for the Country Road brand owner

** Investment research firm expects FY26 to improve, forecasting 3% group sales growth and EBIT margin expansion to 4.8% from 4.3% in FY25

** Improving household budgets driven by rising real incomes and declining interest rates will stimulate consumer demand from FY26 - Morningstar

** Morningstar maintains A$0.83 fair value estimate, saying it is tapering its near-term earnings estimates for the retailer while preserving long-run forecasts largely intact

** Two of the four analysts rate the stock "buy", while the rest rate it "hold"; their median PT is A$0.84, according to data compiled by LSEG

** Stock has lost ~60% YTD, as of last close

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))