Endeavour Group (ASX:EDV) provided a softer fiscal year 2026 update, albeit better than feared, Jarden said in a Thursday note.

Its fiscal year underlying net profit after tax was 4% below the market, with the second half underlying earnings before interest and taxes (EBIT) impacted by a 29% decline in second half retail EBIT. Concerns linger about the sustainability of the top line, without investing further into margin, with second half retail margins down 130 basis points year-over-year.

Endeavour is a strong business that needs to better leverage its brand to grow share of customer wallet, Jarden said. The management's comments regarding no further re-basing of prices and growing the top line are positive.

The investment firm retained its underweight rating and raised the price target to AU$3.20 per share from AU$3.10 per share.