Credit Suisse was impressed with the trading update, as guidance for FY21 retail earnings (EBIT) of $340-360m exceeded expectations.
In the second half the company cycled significant disruptions from the pandemic and there remains restrictions in Asia that are affecting trading.
Hence, uncertainty with respect to the short-term performance supports the broker’s decision to retain a Neutral rating.
Total global sales for the first 18 weeks of the second half were up 70% and up 15.8% compared with the comparable 18 weeks in the second half of FY19. Target is raised to $26.70 from $25.05.
Sector: Retailing.
Target price is $26.70.Current Price is $27.44. Difference: ($0.74) – (brackets indicate current price is over target). If PMV meets the Credit Suisse target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
