Mosaic Brands’ first half result was in-line with the recent trading update. The company expects to generate same store sales growth in FY22 amid further store optimisation (sales/profitability) in the 2H.
Morgans explains the store network closure program remains ongoing, with 41 stores closed early in 2H21 and with 54% of leases expiring by December 2021 and 90% by June 2023.
The Hold rating is maintained as the broker awaits further evidence of the turnaround initiatives underway before becoming more positive on the stock. The target falls to $0.99 from $1.19.
Sector: Consumer Durables & Apparel.
Target price is $0.99.Current Price is $0.83. Difference: $0.16 – (brackets indicate current price is over target). If MOZ meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
