re: just buy before ipod jeans are out Citigroup initiates coverage on Just Group (JST.AU) with a Buy rating and 12-month target price of A$3.10 vs last A$2.44. Expects JST to generate strong 9.8% FY06 sales growth, with 17% lift in new stores, particularly Dotti, Portmans and Jay Jays by FY08. Says JST's scale provides cost advantages over rivals, resulting in higher profit margins, while expected acquisitions of "small fashion retailers in either kidswear or mature womenswear retailing" could lift valuation around 8%. Says fully franked yield of 6.1% underpins, while discount of 8% to domestic rivals and 31% to international peers "is not warranted given the growth outlook."
JST
just group limited
