Street Calls of the Week
Investing.com - JPMorgan upgraded Super Retail Group Ltd. (ASX:SUL) from Neutral to Overweight on Friday, raising its price target to AUD18.80 from AUD18.00 as the retailer approaches the critical holiday shopping season.
The stock closed down 4% on Friday compared to the ASX200’s flat performance, but JPMorgan views the recent slowdown in Auto sales momentum as temporary. While Auto generated approximately 2% like-for-like sales growth over September and October, the firm expects this to increase to around 5% in November and December compared to last year’s lower base.
The company’s Rebel sports division is gaining market share with 3.2% like-for-like sales growth and is positioned for gross margin expansion in the second half of fiscal 2026 as theft pressures are expected to diminish.
JPMorgan anticipates strong performance during the upcoming Black Friday, Christmas, and Boxing Day period, particularly if the Reserve Bank of Australia cuts interest rates on November 4, which futures markets currently price at a 64% probability.
The upgrade follows the appointment of Paul Bradshaw as Group CEO, which JPMorgan believes provides a more stable strategic outlook for the Australian retail group.
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