Australia's Nick Scali rises as Macquarie resumes coverage with 'outperform' rating

Nick Scali

15/05/2024 05:48

** Shares of Nick Scali  NCK.AX  rise 1.0% to A$14.55    
    ** Analysts at Macquarie resume coverage on the furniture
retailer with target price of A$16.10 and an "outperform" rating
    ** Co said in April it will acquire Fabb Furniture and enter
the UK market
    ** Macquarie expects NCK to support significant gross margin
uplift for Fabb Furniture 
    ** Macquarie sees Fabb Furniture profitability to be
supported by top-line growth of 7% in FY25 and 15% in FY26
    ** However, brokerage cuts EPS estimates for FY24 and FY25
by 6% and 15%, respectively, due to initial losses from
acquisition and issue of shares
    ** Six of seven analysts rate the stock "buy" or higher and
one "hold"; their median PT is A$16.20 - LSEG Data
    ** Stock up 16.9% YTD, as of last close 
   

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))