Citi’s update on City Chic Collective is related to US peer Torrid’s better-than-expected Q2 result, as well as a positive guidance that came with it.
The broker believes Torrid’s positive market update bodes well for City Chic, which derives some 39% of its sales from the US.
In addition, Citi believes City Chic is “impressively” making the transition to becoming a global digital retailer. The rating was apparently recently upgraded to Buy from Neutral rating with a target price of $7.20.
Sector: Retailing.
Target price is $7.20.Current Price is $6.26. Difference: $0.94 – (brackets indicate current price is over target). If CCX meets the Citi target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
