RBC Capital Markets has initiated coverage on Endeavour Group with a “sector perform” rating and a $4.40 share price target. While acknowledging the company’s dominant market position, RBC warned that Endeavour has “strategically lost its way in recent years”. Analyst Michael Toner noted that efforts to simplify the business and refocus on execution, coupled with a new CEO, could establish a base for a reset.
Toner said that the incoming CEO, Jayne Hrdlicka, who previously led Virgin Australia and starts on January 1, presents an opportunity to reassess strategy. He believes that actions to simplify, rationalise, and focus on execution are a positive step. RBC believes that the official arrival of the incoming CEO may underpin a strategic reset in the first half of CY26.
Areas under review could include a potential separation of the hotels division, cost reductions, and a sharper focus on in-store execution. RBC Capital Markets also flagged that hotel EBIT growth may fall short of consensus expectations and cited regulatory risks surrounding electronic gaming machines.
Endeavour Group operates Dan Murphy’s and BWS, and also owns Australia’s largest portfolio of licensed hotels. RBC acknowledged the group’s scale, vertical integration, and brand strength but remains cautiously optimistic about its future performance.
