FY20 results were in line with guidance provided in July. Credit Suisse believes, while sales growth is likely to be sustained by household income support, there is less certainty with respect to consumer expenditure after the JobKeeper payments step down in September.
The broker acknowledges the benefits of the structural acceleration in online but believes this is reflected in the share price and retains a Neutral rating. There was no news on possible acquisitions or new expansion opportunities. Target is raised to $19.68 from $19.49.
Sector: Retailing.
Target price is $19.68.Current Price is $20.51. Difference: ($0.83) – (brackets indicate current price is over target). If KGN meets the Credit Suisse target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
