Analyst Julia de Sterke from Morgan Stanley maintained a Buy rating on Premier Investments Limited and decreased the price target to A$16.90 from A$19.20.
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Julia de Sterke has given his Buy rating due to a combination of factors, including resilient core performance and improving clarity on the group’s turnaround initiatives. Premier’s apparel segment continues to deliver solid earnings broadly in line with guidance, underpinned by loyalty programs, store upgrades, and an expanding footprint, even though recent sales were slightly softer than the high market expectations.
At the same time, the Smiggle division shows clearer recovery prospects following the appointment of a permanent managing director, a refreshed product offering, and better sourcing, although execution risks remain. Despite incorporating conservative assumptions for FY26 amid a softer consumer and higher rates, de Sterke views the current valuation as overly pessimistic, with the implied multiple for the retail operations sitting near trough levels and offering substantial upside relative to her target price.
According to TipRanks, de Sterke is ranked #10571 out of 12068 analysts.
In another report released today, UBS also maintained a Buy rating on the stock with a A$18.00 price target.