The trading update at the AGM signalled improvement in gross profit continues, underpinned by private-label/exclusive lines.
Macquarie notes all stores have remained open and the profit improvement has been achieved through direct imports and using the supply chain infrastructure.
The broker makes minor changes to estimates and reduces the target to $6.11 from $6.15. Outperform maintained.
Sector: Retailing.
Target price is $6.11.Current Price is $5.48. Difference: $0.63 – (brackets indicate current price is over target). If BBN meets the Macquarie target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
