Citi believes favourable rental deals are behind Accent Group’s AGM announcement of a revised FY22 rollout to 120 new stores. While markedly up on prior guidance of 65 stores, the broker cautions over the sustainability of current demand and retains its Neutral rating.
Moreover, global footwear manufacturers predict supply shortages into 2022, which may jeapordise the company’s 2H22 sales, explains the analyst. the target rises to $2.99 from $2.14 due to to earnings revisions, higher multiples and a roll forward of valuation measures.
Target price is $2.99.Current Price is $2.73. Difference: $0.26 – (brackets indicate current price is over target). If AX1 meets the Citi target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).