HALISTER1: Majestic Cut to Sell, Much to Prove in Medium Term: Canaccord

Majestic Cut to Sell, Much to Prove in Medium Term: Canaccord

(Bloomberg) -- Majestic is only one year into its three year plan under the new executive team, and there remains much to be proved and delivered over the medium term, Canaccord says in note, cutting from hold to sell.
  • Management concedes that it is too early to tell whether the LFL recovery in Retail is simply a bounce or a trend
  • Believes the valuation has moved too far ahead of potential earnings delivery
  • Shares down as much as 1.9% today
  • EARLIER: Majestic Wine FY Revenue Beats Est., Trading Conditions Tough
  • NOTE: Of 5 analyst ratings, 3 are buy, 1 hold, 1 sell, with an average PT of 465p implying ~3% upside
  • NOTE: Stock has fallen -4.7% month-to-date vs a -3.9% fall in the Stoxx 600 Retail index; is up 53.7% YTD vs a -9.8% fall in the SXRP index
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
WINE LN (Majestic Wine PLC)

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