** Citi predicts risks and uncertainties for Australian retail billionaire Solomon Lew's Premier Investments PMV.AX post the demerger of its apparel brands
** PMV last month transferred its apparel brands to 125-year-old Myer Holdings MYR.AX in exchange of stake in MYR, leaving it with sleepwear designer brand Peter Alexander (PA) and school essentials brand Smiggle
** PMV also owns a 25% stake kitchen appliances maker Breville Group BRG.AX
** Citi says biggest concern is over PA growth and cost blowout; adds risks have risen for PA growth post 1H25
** Brokerage cuts earnings view post demerger of apparel brands; FY25 core net profit view cut by 15.7% to A$196.8 mln ($121.19 mln), FY26 view slashed by 26% to A$182.8 mln; PMV earned A$257.9 mln in FY24
** Citi hikes PT to A$26.00 from A$22.74, retains "neutral" rating; PMV closed at A$23.88 on Friday
** Five of 12 analysts rate PMV "buy" or higher, while seven rate it "hold"; their median PT is A$29.98 – LSEG data
** PMV down 2% this year, as of last close
($1 = 1.6239 Australian dollars)
(Reporting by Sameer Manekar in Bengaluru; editing by Diane Craft)
((Sameer.Manekar@thomsonreuters.com;))
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