Australia's Super Retail gains most in 18 weeks as UBS upgrades to 'buy'

SUPER RETAIL

26/06/2024 02:12

** Shares of Super Retail Group Ltd  SUL.AX  rise as much as
4.1% to A$14.30, their biggest intraday pct gain since Feb 23 
    ** Stock hits itshighest level since May 1
    ** Brokerage UBS upgrades SUL stock to "buy" from "neutral",
citing more constructive consumer sentiment
    ** Sees attractive risk-reward in SUL due to store and
online growth, club membership expansion, and customer value
initiatives
    ** UBS expects EBIT margin to dip in FY24, but improve
thereafter, driven by supply chain optimization
    ** Raises FY24 and FY25 EPS forecasts by 1.6% and 3.2%,
respectively surpassing consensus estimates
    ** Raises stock's PT to A$15 from A$13, reflecting higher
earnings and positive consumer outlook
    ** Stock has fallen 12.9% YTD, as of last close 


 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))