First-half results were characterised by good cost control and brand management, UBS observes. However, the broker reduces near-term forecasts by -15-20% to reflect the impact of coronavirus.
The company has begun to close stores in some regions and demand is slowing materially. However, UBS believes Premier Investments is one of the best-place discretionary retailers.
Buy rating maintained. Target is reduced to $18.90 from $20.95.
Target price is $18.90.Current Price is $11.93. Difference: $6.97 – (brackets indicate current price is over target). If PMV meets the UBS target it will return approximately 37% (excluding dividends, fees and charges – negative figures indicate an expected loss).