Deutsche Bank found some positive signs in the Myer first half result. Operating costs declined and sales trends improved.
The broker still believes the business is challenged and remains unconvinced that sales and gross margin can move in the right direction at the same time.
Still, the risk/reward is more balanced and the rating is upgraded to Hold from Sell. Target is raised to $0.50 from $0.36.
Sector: Retailing.
Target price is $0.50.Current Price is $0.46. Difference: $0.04 – (brackets indicate current price is over target). If MYR meets the Deutsche Bank target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
