Morgan Stanley has initiated coverage on Myer with an “overweight” rating, suggesting the retailer’s shares could more than double. The broker sees significant upside potential under Myer’s new leadership and strategic initiatives, particularly the integration of its apparel brands. According to equity analyst Joseph Michael, the market is currently undervaluing Myer’s capacity to restore growth and profitability.
While acknowledging the inherent execution risks associated with a major turnaround, Morgan Stanley’s analysis points to a “bull case” scenario where Myer’s share price could reach $1.70. This projection is considerably higher than the broker’s initial price target of $1.10. News of the optimistic outlook spurred a positive market reaction, with Myer shares jumping 4.7 percent to 78.5¢ on Thursday morning, reflecting investor confidence in the potential turnaround.
