Morningstar maintains fair value estimate for Australia's Myer, expects margin gains

Myer Holdings

11/12/2025 18:47

** Morningstar maintains fair value estimate on Australia's Myer Holdings MYR.AX at A$0.83

** Clothing retailer on Thursday posted a 3% jump in total sales for first 19 weeks of 2025

** Investment research firm expects underlying EBIT margin for MYR to expand 180 basis points to a long-term level of 5.6% from fiscal 2028

** Morningstar says market fears margin erosion, but expects Myer to offset decline via store footprint optimization and online sales growth (up mid-single digits so far)

** Forecasts FY26 sales growth at 3%, tapering to 1% from FY27 amid structural decline in department store appeal

** Two of four analysts rate the stock "buy" or higher, two "hold"; their median PT is A$0.7, according to data compiled by LSEG

** Stock has fallen 62.4% this year, as of last close

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com))