Endeavour Group (ASX:EDV) is expected to have stronger January sales, supported by weather, building on the momentum of robust hotel performance and higher demand for gaming machines, Jarden said in a note on Wednesday.

The investment firm cut its half-yearly earnings before interest and taxes estimate to AU$561 million, in line with the revised guidance of AU$555 million to AU$566 million. The forecast reflects the impact of increased discounting on margins.

"We see opportunity supported by a strong balance sheet but believe it will take time and could create near-term earnings volatility," analysts at Jarden commented.

Investors' focus will be on potential further price resets under the new chief executive officer, top-line profitability and maximization of portfolio potential.

Given these ongoing concerns, Jarden said it remains cautious, downgrading the stock to underweight from neutral and lowering price target to AU$3.20 from AU$3.60.