Macquarie suggests demand could be stronger for longer as border closures and associated consumer behaviours continue. Gross margins remain elevated amid reduced promotional discounting.
Macpac has recovered in the second half and Macquarie suspects it will stay strong throughout the local winter. Management is focused on what it can control such as the loyalty program and omni-channel investment.
Macquarie suspects this could lead to structurally improved market share as demand tailwinds subside. Neutral maintained. Target rises to $13.00 from $11.70, driven by upgrades to FY22 earnings estimates.
Sector: Retailing.
Target price is $13.00.Current Price is $13.17. Difference: ($0.17) – (brackets indicate current price is over target). If SUL meets the Macquarie target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
