Macquarie considers the risk/reward more balanced now. The broker has feedback that suggests Supercheap Auto and Rebel are holding up well relative to other discretionary retail categories.
Macquarie suspects these brands will attract more investor attention in the current environment if this resilience continues and will support the share price despite weakness in the leisure brands.
Outperform rating maintained. Target is raised to $9 from $6.
Target price is $9.00.Current Price is $8.37. Difference: $0.63 – (brackets indicate current price is over target). If SUL meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).