Citi upgrades Endeavour Group to buy, says retail refocus, winery exit to unlock value

Virgin Australia Holdings

03/06/2026 20:14

** Citi says Australia's Endeavour Group's EDV.AX retail segment has the chance of gaining a higher market share in the near term
** Retail segment is EDV's most profitable unit, accounting for over 80% of the group's total sales in 2025
** Earlier in May, co undertook a strategic review and said it would refocus on its retail operations, scale back its drinks business, among others
** Citi says "retail is facing well-known cyclical and structural challenges", but sees potential for improved execution and top-line performance under the new management team
** In April last year, pub owner named Jayne Hrdlicka, who successfully led Virgin Australia's VGN.AX post-pandemic recovery after taking the helm in 2020, as its new CEO
** Brokerage says co's plan to exit its wineries and vineyards is positive
** "Any successful divestment would remove a management distraction and allow for better execution in the core business" - Citi
** Upgrades stock to "buy" rating 
** YTD, EDV down over 21%

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))