First half results were solid, in Macquarie’s view. The global growth strategy for Smiggle continues to evolve as the company is targeting significant wholesale and online expansion.
The broker finds the logic behind the strategy sound and expects this to underpin growth in the medium to longer term. Nevertheless, similar to the first half, this is likely to temper near-term growth as the strategy is put in place.
In sum, Premier Investments is executing well in soft market conditions, the broker observes. Outperform rating maintained. Target is reduced to $19.20 from $20.90.
Sector: Retailing.
Target price is $19.20.Current Price is $15.49. Difference: $3.71 – (brackets indicate current price is over target). If PMV meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
