MARKETS SPECTATOR: Retail rewind

Citigroup says the retail rally is overdone, while Harvey Norman offers the strongest earning prospects.

Citigroup is a bear on retail stocks. In a note today the firm says it has "sells" on the large discretionary retailers.

Citigroup said in a note that Harvey Norman has the greatest earnings upside, while Myer offers the best relative valuation.

At 1231 AEDT Harvey Norman shares were up 7 cents to $2.855. Myer’s stock had slipped 3 cents to $2.93.

Citigroup suggests the retail share rally is overdone.

“It is plausible there is a wealth induced retail sales spike over the next six months.” 

“As interest rate stimulus fades, sales will subside.”

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles