The second day of Endeavour Group’s investor presentations focused on digital scale economies, with Credit Suisse noting the company outlined digital benefits including basket size and profitability, but the broker is less clear on scale being achieved on-premise.
Commentary also indicated a number under-utilised sites within the Hotel portfolio which could hold potential for commercial and accommodation development, although the broker notes the opportunity is a work in progress for the company, and benefits unlikely to be realised before FY24.
The Underperform rating and target price of $6.60 are retained.
Sector: Food & Staples Retailing.
Target price is $6.60.Current Price is $7.25. Difference: ($0.65) – (brackets indicate current price is over target). If EDV meets the Credit Suisse target it will return approximately -10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
