Like-for-like sales growth over the last 10 weeks has slowed across all of the company’s divisions with only leisure exceeding its first half growth rate, the company reports.
Deutsche Bank is wary of extrapolating sales performance from many particular trading period given the uncertainty around timing and intensity of promotions.
Nevertheless, while gross margin is supportive and considered a positive, the broker acknowledges retail conditions are undoubtedly challenging.
Buy rating and $11.50 target retained.
Target price is $11.50.Current Price is $9.57. Difference: $1.93 – (brackets indicate current price is over target). If SUL meets the Deutsche Bank target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).