Australia's Nick Scali hits record high as Citi upbeat on domestic business

Nick Scali

04/06/2025 02:19

Updates

** Shares of Nick Scali NCK.AX rise 1.7% to a lifetime high of A$19.54

** Stock eyes strongest trading session since May 20, if gains hold

** Citi sees housing conditions improving in Australia beyond the next six months, which should drive top-line growth and operating leverage for Nick Scali

** Brokerage also sees further upside for the home furnishing retailer if co can resettle its store rollout pace to what it was able to achieve previously

** Citi notes Nick Scali averaged about five net new stores per year in the five years to FY19

** Citi also expects the market to look through any short-term risk to co's 2H25 earnings, on the back of weak January 2025 ANZ orders and the fact that housing recovery seems to be taking a little longer than expected

** Brokerage reiterates "buy" call with PT of A$20.64

** Nick Scali up 28.1% so far this year, as of last close

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com))