WEBULL

A Look at Super Retail Group (ASX:SUL) Valuation After Analyst Upgrade and Governance Changes

Simply Wall St · 1d ago

Analyst upgrade and governance moves reset expectations

Super Retail Group (ASX:SUL) has caught investor attention after a major broker upgraded the stock to Buy, spotlighting recent leadership changes and new performance rights that more closely align management incentives with shareholder outcomes.

See our latest analysis for Super Retail Group.

The A$15.70 share price has slipped modestly over the past quarter, yet Super Retail Group still boasts a robust five year total shareholder return of more than double investors’ original stake. This hints that recent weakness may be more about sentiment than fundamentals.

If this mix of solid long term total shareholder returns and near term volatility has you curious, it could be a good moment to broaden your search and explore fast growing stocks with high insider ownership

With analysts lifting their targets and long term returns already impressive, the key question now is whether Super Retail Group’s current valuation still leaves upside on the table or whether the market has fully priced in its growth.

Most Popular Narrative Narrative: 9% Undervalued

With Super Retail Group closing at A$15.70 against a narrative fair value near A$17.25, the story leans toward upside if forecasts land as expected.

The analysts have a consensus price target of A$17.253 for Super Retail Group based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of A$20.5, and the most bearish reporting a price target of just A$11.5.

Read the complete narrative.

Want to see what kind of steady revenue climb, margin lift, and future earnings multiple have been baked into that valuation gap? The full narrative spells it out.

Result: Fair Value of A$17.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained retail theft pressures and intensifying online competition could erode margins and stall the earnings growth that underpins the current upside case.

Find out about the key risks to this Super Retail Group narrative.

Build Your Own Super Retail Group Narrative

If you see things differently or want to dig into the numbers yourself, you can build a personalised view of Super Retail Group in just a few minutes: Do it your way

A great starting point for your Super Retail Group research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.