Citi’s analysis of the City Chic websites indicates the focus on Avenue and Evans is appropriate but further investment may be required.
While growth in May slowed marginally this is unlikely to be a concern at present. The broker maintains a Neutral rating, noting the stock appears to be factoring in the upside. Target is $4.30.
Sector: Retailing.
Target price is $4.30.Current Price is $5.20. Difference: ($0.90) – (brackets indicate current price is over target). If CCX meets the Citi target it will return approximately -21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
