First-quarter trading has revealed the company’s strategies are gaining momentum, with Citi noting the business has stabilised. The broker expects Michael Hill will focus on improving Canadian sales productivity and expanded its product range.
Meanwhile, comparables will become tougher to cycle and Australian retail conditions continue to be challenging. Buy rating maintained. Target rises to $0.81 from $0.71.
Sector: Consumer Durables & Apparel.
Target price is $0.81.Current Price is $0.68. Difference: $0.13 – (brackets indicate current price is over target). If MHJ meets the Citi target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).