Profit improved in FY19 on minimal incremental investment, Credit Suisse observes. Invested capital was flat and earnings (EBIT) increased 11%.
The broker believes debates on the company’s UK exposure are becoming peripheral to the overall investment case. The business appears to have been able to mitigate market weakness through rental reductions.
Domestically, apparel brands improved their market positions. Outperform rating maintained. Target is raised to $20.56 from $19.58.
Target price is $20.56.Current Price is $18.89. Difference: $1.67 – (brackets indicate current price is over target). If PMV meets the Credit Suisse target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).