AX1 – Morgan Stanley rates the stock as Overweight

Accent Group has stepped away from guidance for FY20 and second-half earnings growth.

While the company now expects a decline in earnings year-on-year, Morgan Stanley suspects, on the back of commentary, that it remains well-positioned in terms of inventory, supply chain, the digital offering and relative scale.

Overweight. Target is $2.00. Industry view is In-Line.

Sector: Retailing.

Target price is $2.00.Current Price is $0.69. Difference: $1.31 – (brackets indicate current price is over target). If AX1 meets the Morgan Stanley target it will return approximately 66% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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