Given recent performance from other apparel retailers Macquarie has reiterated its expectations that City Chic Collective’s second half earnings will exceed its first half by $2.0m, noting online traffic and a lesser impact from lockdowns should support the result.
The broker anticipates a economic recession in the US in 2023, but expects Australia will experience only an economic downturn, but has lowered FY23 and FY23 forecasts to account for a potential consumer demand decline.
The Outperform rating is retained and the target price decreases to $2.50 from $3.20.
Sector: Retailing.
Target price is $2.50.Current Price is $1.92. Difference: $0.58 – (brackets indicate current price is over target). If CCX meets the Macquarie target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
