CCX - UBS rates the stock as Buy
PUBLISHED
2022-02-25
Content
Following interim results for City Chic Collective, UBS lowers its EPS forecasts and raises assumptions for capital expenditure. As a result, the target price falls to $5 from $6. a build in inventory is expected to result in growth for revenues and market share.
The broker expects cash gerenation (sale of an inventory build) and less supply chain disruption to moderate some of the elevated inventory holdings. This is expected to result in a return of a net cash position after a potential drift into a 30 June 2022 net debt position.
Sector: Retailing.
Target price is $5.00.Current Price is $3.49. Difference: $1.51 - (brackets indicate current price is over target). If CCX meets the UBS target it will return approximately 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).