Super Retail's 2024 strategy "sound", but may affect gross margin - Jefferies

SUPER RETAIL

17/05/2023 22:40

** Analysts at Jefferies view Super Retail Group Ltd's
 SUL.AX  strategy update for 2024 as "sound", noting key drivers
for the retailer's growth strategy like loyalty and network
investment
    ** The retailer laid out its FY24 strategy, with renewal of
loyalty program across several brands in the pipeline 
    ** Brokerage says co's strategy to relaunch loyalty plan for
its Supercheap Auto brand will potentially weigh on its gross
margin while helping grow profit
    ** Believes SUL is fundamentally a good business with
diversity in its operations
    ** Brokerage cuts PT by 10% to A$10; keeps "underperform"
rating unchanged 
    ** Five of fourteen analysts rate the stock "buy" or higher,
seven "hold" and two "sell" or lower; their median PT is A$13.07
– Refinitiv data
    ** As of last close, stock up 16.9% this year

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