While the acquisition of Matt Blatt and the acceleration in online penetration is supportive, UBS remains cautious. As stores re-open and competitive offerings emerge the broker expects the benefits for online business from the pandemic will partially reverse.
The broker suggests the market is already pricing in a structurally better outlook. While raising estimates for the long-term by 8-10%, UBS retains a Neutral rating. Target is raised to $8.50 from $6.30.
Target price is $8.50.Current Price is $8.35. Difference: $0.15 – (brackets indicate current price is over target). If KGN meets the UBS target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).