Citi increases PT on Nick Scali, says Feb rate hike to be favourable mid-term

Nick Scali

26/01/2024 03:43

** Analysts at Citi increase price target on furniture
retailer Nick Scali  NCK.AX  to A$12.60 from A$11.57; maintains
stock rating "neutral"
    ** Citi economists expect another rate hike in February,
which "warrants for a cautious outlook on demand for housing
related retailers (Nick Scali and Beacon Lighting Group
 BLX.AX ) in the near-term"
    ** February rate hike is expected to be the final one which
should be favorable for the housing cycle in the medium term" -
Citi
    ** Brokerage keeps earnings forecast unchanged for FY24 to
FY26
    ** Three of six analysts rate the stock "buy" or higher, two
"hold" and one "sell"; their median PT is A$12.60 – LSEG data
    ** Stock gained 15.8% in 2023

 (Reporting by Megha Rani)
 ((Megha.Rani2@thomsonreuters.com;))