Endeavour Group shares slide on Goldman Sachs downgrade
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The news: Shares in Endeavour Group fell after Goldman Sachs downgraded its rating on the Dan Murphy's and BWS owner, citing a longer-than-expected recovery in its retail market share.
The numbers: Endeavour shares were down 1.7% to $4.05 at 12:45pm AEDT.
Goldman Sachs downgraded the stock from 'buy' to 'neutral' and trimmed its target price from $5.10 to $4.50.
The context: Goldman Sachs analysts said growth in the liquor retail industry is "increasingly challenged", with market share gains becoming the most critical factor.
They noted that Dan Murphy's continues to have a unique lowest-price guarantee consumer proposition, but concerns remain over BWS's ability to compete with strong independent rivals.
The analysts also said that recent senior management turnover has increased risk around the restoration of Endeavour's market share against a more challenged market backdrop.
The source: Goldman Sachs research
