The company is taking steps to address its losses by closing the Gap brand. Citi believes this is an important step and will allow the business to focus on the more profitable Oroton brand.
There are six stores trading and Citi estimates the brand contributed 20% to total sales for the group.
Citi upgrades to Buy, High Risk from Neutral, High Risk. Target is raised to $1.20 from $1.14.
Target price is $1.20.Current Price is $1.01. Difference: $0.19 – (brackets indicate current price is over target). If ORL meets the Citi target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).