** 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))