SUL – Morgan Stanley rates the stock as Overweight

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The company posted a strong trading update, as automotive like-for-like sales growth accelerated to 7.5% in the five weeks to March 21. Stores have been closed in New Zealand for a minimum of four weeks.

Morgan Stanley estimates Super Retail has around $490m in available liquidity which represents a six-months buffer, assuming zero revenue and no reduction the cost base.

The broker remains comfortable with the liquidity and believes the stock is oversold.

Overweight rating maintained. Target is $10.50. Industry View: Cautious.

Sector: Retailing.

Target price is $10.50.Current Price is $4.28. Difference: $6.22 – (brackets indicate current price is over target). If SUL meets the Morgan Stanley target it will return approximately 59% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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