Wilsons notes the retailer’s revenues have been impacted by the bushfires, as well as broader difficult trading conditions.
Updated revenue estimates show a decline in FY20 to $869.3m while operating profits are estimated to decline to $49.5m and $67.3m in FY20 and FY21 respectively.
The gross margins are estimated to be 59% in FY20 and the broker remains confident about management’s online strategy gaining momentum.
The broker retains its Buy rating with a Target Price of $3.43.
This report was published on January 14, 2020.
Sector: Consumer Durables & Apparel.
Target price is $3.43.Current Price is $1.76. Difference: $1.67 – (brackets indicate current price is over target). If MOZ meets the Wilsons target it will return approximately 49% (excluding dividends, fees and charges – negative figures indicate an expected loss).
