Retail earnings were ahead of Macquarie’s estimates in FY20. The broker likes the exposure to a diversified retailer with a balance sheet that is net cash and characterised by property-related debt and a $1bn investment in Breville Group ((BRG)).
The higher earnings margin in the online channel is key to driving earnings growth going forward and the broker retains an Outperform rating, raising the target to $24.22 from $22.13.
Sector: Retailing.
Target price is $24.22.Current Price is $20.33. Difference: $3.89 – (brackets indicate current price is over target). If PMV meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
