Endeavour Group (ASX:EDV) could see a potential re-rating despite weaker retail sales and cost pressures, according to a Tuesday note by Jarden Research.

On Monday, the company said its group sales fell 1.7% in the fiscal third quarter to AU$2.84 million from AU$2.89 million a year earlier.

Rising competition, continuing cost pressures, and the upcoming implementation of a new enterprise resource planning system are expected to contribute to downside risks for the company's earnings per share in fiscal year 2026, Jarden said.

Despite the short-term challenges, fresh strategic direction from incoming Chief Executive Officer Jane Hrdlicka could unlock opportunities and restore investor confidence, Jarden added.

Jarden believes that Endeavour's near-term catalysts are few, and the stock may remain under pressure until there is greater clarity around the company's new strategy.

The firm pointed out that Endeavour needs to simplify its liquor supply chain and to enhance and strengthen its liquor stores Dan Murphy's and BWS.

The new CEO, expected to take a fresh approach in 2026, could ultimately lead to disruption, but until there is more clarity on strategy and improvements in liquor consumption, Jarden expects Endeavour's market multiple to stay depressed.

The firm maintained Endeavour's neutral rating but lowered its price target to AU$4.20 from AU$4.30.

Shares of the company rose past 3% in recent Wednesday trade.