Morgans has returned from Endeavour Group’s investor days with increased confidence in the long-term outlook with management at the company aiming for both market share gains and margin improvement.
In addition, Morgans highlights investment in digital and the innovation capability of Pinnacle Drinks. The challenge for management is to r the targeted minimum 15% ROI on renewals and growth capex, the broker adds.
The anticipation that Retail earnings will normalise leads to small reductions in FY23 and FY24 forecasts. Target price shifts to $7.30. Hold rating retained.
Sector: Food & Staples Retailing.
Target price is $7.30.Current Price is $7.27. Difference: $0.03 – (brackets indicate current price is over target). If EDV meets the Morgans target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
