Street Calls of the Week
Investing.com - RBC Capital initiated coverage on Premier Investments Ltd. (ASX:PMV) with a Sector Perform rating and a price target of AUD19.80 per share.
The investment firm identified Peter Alexander, Premier’s sleepwear brand, as the key growth driver for the business, noting its strong historical performance record.
RBC Capital indicated that future upside for Premier Investments would depend on two critical factors: the long-term success of Peter Alexander’s expansion into the UK market and a turnaround in performance for the Smiggle stationery business.
While the firm expects macroeconomic improvements to provide some support for the company, it highlighted potential execution risks stemming from management turnover and an evolving competitive landscape.
At its current trading level of approximately 17 times FY26 estimated price-to-earnings ratio, RBC Capital views Premier Investments shares as fairly valued.
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