Premier Investments Bull Waiting on Consumer Pressures to Ease
Dow Jones
Sep 25
0220 GMT - Premier Investments' bull at Macquarie sees little chance of the stock rerating until broader consumer pressures ease. The investment bank's analysts tell clients in a note that shares in the Australian retail conglomerate show value at just 4.1 times Ebit. However, they think the tough consumer environment created by high interest rates and elevated inflation probably needs to improve before the stock can deliver on that. For now, they reckon that the key issue for Premier is delivery on its turnaround plans for stationery chain Smiggle. The trading performance of the stores' new products will be more measurable from November, they add. Macquarie keeps an outperform rating on the stock with a target price of 15.70 Australian dollars. Shares are down 1.2% at A$11.81.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.