In the good books
Accent Group (AX1) was upgraded to Add from Hold by Morgans
The company has indicated like-for-like sales in the first 20 weeks of FY19 are up 2.5%. This is broadly in line with Morgans' estimates. The broker had anticipated sales would slow down after the FY18 result because of a reduction in clearance activity and the cycling of a strong result within Hype. Online sales growth has been exceptionally strong as a result of the investment in this channel in recent years. While December is an important month, the broker envisages upside risk to guidance, predominantly because of the material expansion of gross margin experience to date. Rating is upgraded to Add from Hold. Target is reduced to $1.46 from $1.47.