** Citi sees housing conditions improving in Australia beyond the next six months, which should drive top-line growth and operating leverage for Nick Scali NCK.AX
** Brokerage also sees further upside for the home furnishing retailer if co can resettle its store rollout pace to what it was able to achieve previously
** Citi notes Nick Scali averaged about five net new stores per year in the five years to FY19
** Citi also expects the market to look through any short-term risk to co's 2H25 earnings, on the back of weak January 2025 ANZ orders and the fact that housing recovery seems to be taking a little longer than expected
** Brokerage reiterates "buy" call with PT of A$20.64
** Nick Scali up 28.1% so far this year, as of last close
(Reporting by Nikita Maria Jino in Bengaluru)
((Nikita.Jino@thomsonreuters.com))
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