MS initiates coverage on Australia's Super Retail with 'equal-weight' rating

SUPER RETAIL

18/09/2023 03:08

** Morgan Stanley initiates coverage on Super Retail Group
Ltd  SUL.AX  stok with an "equal-weight" rating and a price
target of A$11.50
    ** Says rating is premised on slowing top-line growth as
consumer spending on retail goods moderates, margin pressures
due to higher cost of doing business, among others 
    ** Says the retailer is favourably disposed to structural
changes made to simplify the business and investments SUL is
making in supply chain, loyalty and store
    ** However, brokerage sees moderation in consumer spending
will create headwinds for the company
    ** Morgan Stanley expects risks to sales and margins for
Australia's discretionary retailers
    ** Three of 13 analysts rate the stock "buy", six "hold" and
four as "sell" or lower; their median PT is A$13.13 – LSEG data
    ** Super Retail stock down 29.7% this year, as of last close

    

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