2321 GMT - Endeavour Group's stock could stay cheap for some time despite the Australian drinks and hospitality provider executing reasonably well in a tough market, Citi analyst Sam Teeger says. He flags factors including the risk of operating deleverage from cost inflation exceeding revenue growth, the potential for further gaming-machine regulation, and strategic uncertainty from a change in CEO. The company has a number of levers to drive growth and is trading at an undemanding valuation multiple, but Teeger tells clients in a note that he sees no sign of momentum from Endeavour's core business. Citi cuts its target price 17% to A$4.50 and keeps a neutral rating on the stock. Shares are down 2.4% at A$4.39. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 11, 2024 18:21 ET (23:21 GMT)
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