JPMorgan lifts Super Retail stock rating, trims price target

Published 09/05/2025, 10:18
JPMorgan lifts Super Retail stock rating, trims price target

On Friday, JPMorgan analyst Bryan Raymond (NSE:RYMD) upgraded Super Retail Group Ltd. (SUL:AU) stock rating, moving it from Neutral to Overweight, while slightly reducing the price target to AUD15.50 from AUD15.80. Raymond highlighted the company’s emergence from a challenging phase marked by increased competition and general uncertainty, noting that the stock’s current valuation presents an attractive opportunity.

The revised price target represents a modest 1.9% decrease from the previous target. Despite this adjustment, Raymond’s outlook for Super Retail is optimistic, citing potential benefits from interest rate cuts and tariff-related sourcing advantages. The upgrade follows a trading update that prompted JPMorgan to revise its forecast for Super Retail’s earnings per share (EPS). For the fiscal year 2025, the estimated EPS has been downgraded by approximately 2%, and for fiscal year 2026, the downgrade is more significant at 5.3% due to the implementation of a new HR system and additional distribution center costs.

However, these costs are expected to be temporary, with the situation anticipated to improve by fiscal year 2027. Raymond believes that the risks associated with Super Retail have lessened, and the stock is now seen as a value opportunity within the discretionary retail sector, which has otherwise experienced a re-rating. According to Raymond, Super Retail’s stock is trading at a notable discount compared to its peers, with the 12-month price target of AUD15.50 implying a forward price-to-earnings ratio (PER) of 13.2x for fiscal year 2027.

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