Citi observes downside risks are increasing in the second quarter as cost pressures are building. This comes despite better top-line momentum. Same-store sales growth in the first 18 weeks of FY22 were 4.3%, implying an acceleration from the first 7 weeks.
Surprisingly, Japan has slowed as since restrictions were eased at the end of September sales have turned down. Citi maintains a Neutral rating and reduces the target to $144.25 from $148.70.
Sector: Consumer Services.
Target price is $144.25.Current Price is $142.30. Difference: $1.95 – (brackets indicate current price is over target). If DMP meets the Citi target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
