Buy rating maintained while the price target loses -1c to $0.80. Citi found the Q2 trading update serves as a signal that sales momentum is strong, supported by Black Friday and Christmas 2019.
The analysts acknowledge headwinds remain for the jeweler short-term, but medium term earnings momentum is expected to improve. Citi also finds the stock is still trading at undemanding multiples in combination with an above average dividend yield.
Sector: Consumer Durables & Apparel.
Target price is $0.80.Current Price is $0.71. Difference: $0.09 – (brackets indicate current price is over target). If MHJ meets the Citi target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
