Domino’s Pizza Australia rejects Bain Capital takeover report after share surge
Investing.com - RBC Capital initiated coverage on Super Retail Group Ltd. (ASX:SUL) with a Sector Perform rating and a price target of AUD18.20 on Friday.
The firm identified Super Cheap Auto (SCA) as the company’s primary growth engine, noting it offers resilient earnings through essential maintenance services, supported by growth in Australia and New Zealand’s vehicle population.
RBC Capital indicated that electric vehicle adoption presents limited near-term risk to the company, while the planned loyalty program revamp should support margins going forward.
The research note highlighted competitive risks, including Bunnings entering the auto space and Sports Direct emerging as a new competitor to the company’s Rebel sports division, though established brand loyalty and differentiated service offerings should help Super Retail Group compete effectively.
The firm’s Sector Perform rating was driven by the recent CEO departure, competition risks, and the stock’s elevated multiple of 15x compared to its five-year average of 13x.
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