The broker has initiated coverage of furniture veteran Nick Scali with an Outperform rating and $4.71 target.
The company has recently been delivering strong top line growth on the back of the housing market boom but despite the broker’s insistence 2016 will see a cooling in the housing market, store roll-outs in Aust and the potential to expand into NZ mean sales will peak in 2016 but increase through the cycle from 2017 on the broker’s forecasts.
Target price is $4.71.Current Price is $4.15. Difference: $0.56 – (brackets indicate current price is over target). If NCK meets the Macquarie target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).