Endeavour Group (EDV) is a reasonably defensive business with strong market positions, a broad network of retail liquor stores/hotel venues and well-known brands. And Raymond thinks it’s a buy.
“Growth opportunities include expanding the store/venue network, leveraging digital and data capabilities, broadening the product range, acquisitions and increased operating efficiency.
“We forecast FY21 EBIT to rise by 24% to A$856m driven by elevated demand for in-home consumption in Retail and a recovery in the Hotels business.
“We initiate coverage on EDV with a Hold rating and A$6.65 target price.
“While we are attracted to the Retail business, the near-term outlook for Hotels remains highly uncertain and at risk of further COVID-related lockdowns,” he said.
Endeavour Group (EDV)
Source: Google
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