Gold prices hit 2-week high as Trump-Fed feud escalates with Cook firing
Investing.com - Citi upgraded Mr Price (JO:MRPJ) Group Ltd (JSE:MRP) stock rating to Buy from Neutral on Wednesday, raising its price target to ZAR270.00 from ZAR247.00, citing expectations for strong sales and margin expansion.
The upgrade comes ahead of Mr Price’s Q1 2026 sales update scheduled for Wednesday, July 23, 2025. Citi projects Q1 2026 sales growth of 9.1%, despite a slowdown from April/May’s 11.6% growth, with an acceleration to approximately 10% expected in Q2.
Citi highlighted the volume recovery in MRP Apparel, Sport and Home divisions following a prolonged period of volume declines. The firm also sees potential for further margin expansion from improved input pricing, M&A integration, and positive operational leverage.
The research firm raised its profit after tax forecasts by 2.0% and 2.2% for fiscal years 2026 and 2027, respectively. Citi notes the stock is trading at an attractive forward price-to-earnings ratio of 12.8x, approximately 17% below its long-term average of 15.5x.
Mr Price shares have declined approximately 29% year-to-date, which Citi believes more than fully reflects downgrades to fiscal year 2026 earnings per share estimates. The new price target of ZAR270 per share represents a potential upside of about 29%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.