Endeavour Group Plenty of Opportunity

Goldman Sachs retains a Sell rating on Endeavour Group with a revised $2.80 price target, noting that while the new transformation strategy is ambitious, near-term earnings remain under pressure.

Key Takeaways

• 1.Goldman Sachs maintains a Sell rating on EDV despite a positive investor day, citing a significant downside to consensus earnings in FY27.
• 2.Management has set an ambitious $300m cost-out target and accelerated its Hotel renewal program to 50-60 per year.
• 3.The Liquor business is shifting focus back to price competitiveness and customer trust over historical margin maximization.

Table of Contents

• Liquor: reprioritizing price competitiveness and customer trust over margins
• Hotels: setting a very ambitious pace
• Earnings changes
• Financial Summary
• Key Charts
• GSe vs. Consensus
• Valuation
• Disclosure Appendix

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