After a trading update, Morgans assesses top-line momentum remains strong. Third quarter total sales rose 39.6% and like-for-like sales by 37.3%. The Add rating and $8.37 target are retained while upside risk remains if the current sales trajectory continues over 4Q21.
Sales growth was further boosted by softer sales across March last year (initial covid-19 impacts), before the full store closure period of April/May, explains the broker. The like-for-like sales outcome implies that sales accelerated to 49% in the last six weeks of the half.
Sector: Retailing.
Target price is $8.37.Current Price is $7.80. Difference: $0.57 – (brackets indicate current price is over target). If UNI meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
