Citi flags risk to Nick Scali's sales momentum despite strong FY26 execution
09/08/2026 22:30
BUZZ-Citi flags risk to Nick Scali's sales momentum despite strong FY26 execution ** Citi says Australia's Nick Scali's NCK.AX FY26 result "reflects strong execution with regards to gross margins and operating expenses"
** Brokerage sees downside risk to NCK's 2027 half-yearly earnings over housing policy changes reported in the May Federal budget
** Citi notes 2H26 was challenging, "we see risk that sales momentum slows further over 1H27 as a result of the lagged impact on furniture sales from the Federal Budget"
** Forecasts 1H27 ANZ LFL sales to decline by 3% on pcp
** Citi maintains "neutral" rating for stock
** 6 of 11 analysts rate the stock "buy" or higher, 4 "hold" and 1 "sell" or lower; their median PT is A$17.57 – LSEG data
** Stock down 27.4% YTD, as of last close
(Reporting by Shravya Marakini in Bengaluru)
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