Retail Food Group, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst from PAC Partners maintained a Buy rating on the stock and has a A$2.40 price target.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
PAC Partners has given his Buy rating due to a combination of factors including the reaffirmed FY26 EBITDA guidance and a clear path to earnings growth beyond the near-term softness in sales. While first-half EBITDA landed near the bottom of guidance and cash flow declined versus the prior period, management has maintained its full-year outlook and continues to rationalise the store base by exiting underperforming outlets.
PAC Partners’s rating is based on the view that the planned cost-reduction program and operational improvements will materially lift profitability in FY27, with current savings momentum already ahead of the near-term targets. With funding secured for brand expansion and process upgrades, and the shares trading just above record lows at an implied FY27 P/E of around 6x, the broker believes the market is underestimating the company’s earnings recovery and growth potential.