Endeavour Group's Results Show Early Signs of Improvement, But Sales Growth Barely Positive, Says Jefferies

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Endeavour Group's (ASX:EDV) fiscal first-half results showed early signs of improvement, with market share now expanding, but sales growth remains barely positive due to challenging dynamics in the retail liquor category, according to a Thursday Jefferies note.

The company on Wednesday reported fiscal first-half underlying earnings of AU$0.156 per share, down from AU$0.167 a year earlier. Analysts polled by FactSet expected earnings of AU$0.15.

The investment firm believes that additional price investment may still be required to support competitiveness, while the broader macroeconomic outlook could place further pressure on the already weak retail liquor sector.

Jefferies kept a hold rating on Endeavour Group with a price target of AU$3.60.

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