Citi expects sales growth for Warehouse Group, lifts TP

Warehouse

19/10/2020 21:42

** Citi Research lifts target price on consumer goods
retailer Warehouse Group  WHS.NZ  to NZ$2.60 from NZ$2.20;
retains 'Neutral' rating
    ** Brokerage forecasts group like-for-like sales growth of
10.1% in 1H21 but expects a deceleration to 9.8% in 2H21
    ** Level of government stimulus provided to consumers and
degree to which they can spend in areas outside of retail will
influence sales in FY21 - Citi
    ** On Thursday, WHS reported FY20 group sales of NZ$3.2 bln
($2.11 bln), up 3.3% from a year ago  urn:newsml:reuters.com:*:nNZW3Lg40d
    ** Current average rating on WHS shares is 'buy'; analyst
mean price target is NZ$2.4 – Refinitiv data
    ** As of the previous close, the stock had fallen 16.37% so
far this year

($1 = 1.5142 New Zealand dollars)

 (Reporting by Deepali Saxena
Editing by Marguerita Choy)
 ((Deepali.Saxena@thomsonreuters.com; Twitter: @deepalisaxenas))