Australia's Super Retail rises; Morningstar upgrades fair value estimate, rating

SUPER RETAIL

18/06/2024 04:21

(Adds share moves and milestones)
    ** Shares of Super Retail Group  SUL.AX  rise as much as 3%
to A$13.680, their highest since May 16
        ** Stock posts biggest intraday percentage gain since
May 27
    ** Morningstar upgrades moat rating for miscellaneous
speciality retailer to "narrow" from "no-moat"; upgrades fair
value estimate to A$11.00 apiece from A$10.50
    ** Brokerage sees better competitive cost advantage for
SUL's core auto parts segment Supercheap, which accounts for
half of its earnings
        ** Says the technical expertise of Supercheap's sales
staff and its fitting services insulate it from online
competition   
        ** Scale benefits of the Supercheap Auto chain are
significant and more than offset pressures on profitability in
SUL's smaller sporting and leisure goods segments - brokerage
    ** Average recommendation of 14 brokerages on SUL is a
"hold"; their median PT is A$14.89 - LSEG data
    ** Stock has fallen 15.8% YTD, as of last close
    

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((shivangi.lahiri@thomsonreuters.com))