In an article in the AFR yesterday reporter Richard Henderson looked at the likely performance of some of the more prominent retailers listed on the ASX.
Henderson provided the following analysis based on a recent UBS report...
...Other market participants are less worried about the departure of JobKeeper on retail shares. UBS analysts note that although many are fearful of losing their job when the support ends, they are confident in finding future work. This helped buoy the bank’s consumer spending forecast and the economy’s stunning gains in employment.
The analysts said expected profits for retailers would likely level out in the second half of the current financial year after a bumper first half, but remained supportive of several retailers. The bank analysts highlighted Premier Investments, Adairs, the homewares store, and Super Retail, the owner of the Rebel Sport chain, as likely winners in the near term.
UBS have nominated Adairs as one of their top picks to continue to to out perfperform in the near term.
Cheers.................Daicosisgod
Go Pies!!!! ----------- Darcy Moore for All Australian after just 2 games
ADH Price at posting:
$3.98 Sentiment: Buy Disclosure: Held
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