MYR - Citi rates the stock as Sell
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The broker is forecasting a -4.9% year on year decline when Myer reports March Q sales this week. Kmart ((WES)) and Big W ((WOW)) have both been investing in price recently and disinflationary pressure is weighing on the broader department store sector, the broker notes.
A warm start to winter won't have helped either. A strategy realignment is expected when the new CEO takes over but in the meantime Myer is in danger of breaching debt covenants. Sell and 41c target retained.
Target price is $0.41.Current Price is $0.38. Difference: $0.03 - (brackets indicate current price is over target). If MYR meets the Citi target it will return approximately 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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