Citi trims PT, earnings view on furniture retailer Nick Scali on weak outlook

Nick Scali

19/10/2023 22:21

** Citi cut its price target on Australian furniture
retailer Nick Scali Ltd  NCK.AX  to A$13.35 from A$14.35,
retains "buy" rating
    ** NCK on Thursday forecast 1H24 NPAT between A$40 mln and
A$42 mln ($25.31 mln - $26.57 mln), down from A$60.6 mln in 1H23
    ** NCK added Q1 written sales orders fell 5.4%, with
like-for-like sales orders down 6.7%
    ** Citi trims its 1H32 NPAT forecast ~5% to A$41.4 mln, and
cuts FY24-26 NPAT view by 3% to 5% reflecting slower rate of
sales and higher costs
    ** However, adds it is "encouraged by improving momentum in
written order sales"
    ** Says stable interest rate environment and improving
housing cycle to be positive for outlook
    ** NCK top pick in small-cap retail sector - Citi
    ** Down 2.4% this year, as of last close, vs a 0.7% decline
in the ASX All Ordinaries index  .AORD 


($1 = 1.5805 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))