FY20 results were ahead of expectations, supported by cost controls and government assistance. Wholesale order books for Rip Curl and Oboz are improving for the second half and the Kathmandu brand will resume offshore expansion post the pandemic.
Still, Macquarie is wary because of industry feedback regarding the highly competitive and brand-centric outdoor consumer segment offshore. Neutral retained. Target is raised to $1.15 from $1.09.
Target price is $1.15.Current Price is $1.15. Difference: $0.00 – (brackets indicate current price is over target). If KMD meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).