Citi retains 'buy' on Nick Scali after better-than-expected outlook

Nick Scali

25/11/2022 24:52

** Analysts at Citi retain 'Buy' rating on furniture
retailer Nick Scali Ltd  NCK.AX  with a price target of A$14.62
    ** Says NCK is performing "materially better-than-expected",
with NCK's forecast beating market estimates
    ** NCK on Thursday forecast 1H23 net profit after tax to be
between A$56 mln ($37.81 mln) and A$59 mln, higher than A$35.6
mln logged last year and beats Visible Alpha estimate by 19-26%
    ** NCK said it was well placed to benefit from store
expansions, Plush brand margin, and further sustained online
growth 
    * Citi says possible positive movements in freight costs led
to 4M23 gross margins beating consensus, with NCK seeing further
improvements in 2H23
    ** 6/7 analysts rate the stock "buy" or higher, while one
rates it "sell"; their median PT is A$12.50 – Refinitiv data
    ** NCK up as much as 7% to touch its highest level since
Sept. 15; on track for third straight positive session, if gains
hold
    ** Down 33.4% this year as of last close
($1 = 1.4813 Australian dollars)
 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))