Originally Posted by
winner69
And Jarden goes UNDERWEIGHT
BusinessDesk reports
Investment advisory firm Jarden has downgraded its rating for The Warehouse Group from neutral to underweight following a Christmas slump.
In an update published on Monday, analyst Guy Hooper said sales momentum slowed over the holiday period, with group sales falling 5.5% compared to the eight weeks to December the previous year.
With rising cost pressures and dampened consumer confidence, Jarden was forecasting a 4.4% decline in year-on-year sales over the remainder of the 2023 financial year.
Shares in the group dropped 7% on Dec 30 after it disclosed its quarter two results, ranging from a 1.3% drop in sales for The Warehouse to 11.8% for Noel Leeming.
The Warehouse Group shares were trading at $2.63 on Monday morning.
Taking into account factors like earnings guidance and consumer confidence, Hooper revised down the 12-month target price for the shares from $3.15 to $2.45.
“In our view, [The Warehouse Group] is most exposed in the sector to a broader slowdown given the degree of operating leverage in the business and its net debt balance.”