Australia's Accent Group recoups some losses; Citi, UBS cut PT on lower profit estimate
Updates
** Shares of footwear retailer Accent Group AX1.AX rise as much as 2.2% to A$2.3, recovering some of the losses after a more than 11% decline in the previous session
** Citi cuts price target for AX1 to A$2.47 from A$2.57 and maintains "buy" rating
** UBS cuts PT to A$2.50 from A$2.53 and maintains "buy" rating on lowering earnings per share estimates for FY25 and FY26 by 0.8% and 2%, respectively, with lower sales from FY26 onwards
** Co on Thursday reported a 70-basis-point drop in FY25 gross margin until October-end
** UBS says gross margins have fallen as AX1 meets the consumer that is responding to promotion and value offers
** Citi cuts net profit after tax estimate by 9% for fiscal 2025-2027 to reflect lower gross margin on the back of higher promotional activity
** All 11 analysts rate the stock "buy" or higher; their median PT is A$2.50 – LSEG data
Reporting by Sneha Kumar and Nikita Maria Jino in Bengaluru
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