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What is Morgans’ updated view on Endeavour shares?

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Endeavour Group Ltd (ASX: EDV) shares have been in focus this week after the company released its half-year results on Wednesday. 

Endeavour’s portfolio includes Australia’s largest retail drinks network mainly across its Dan Murphy’s and BWS brands. These account for approximately half of all off-premises retail liquor sales in Australia. 

The company’s other brand names include ALH Hotels, Langton’s, and Jimmy Brings.

Initially, earnings results sent Endeavour shares tumbling, before recovering 2.8% yesterday. 

As a quick recap, the company reported: 

  • Group sales of $6.7 billion, a 0.9% increase on the prior corresponding period
  • A 6.7% decline in underlying net profit after tax to $278 million
  • 17.1% decline in statutory net profit after tax to $247 million
  • A fully franked interim dividend cut by 13.6% to 10.8 cents per share.

Its share price is currently down approximately 6% over the last 12 months.

What did brokers have to say?

Following the results, brokers were quick to update guidance on the company. 

Bell Potter adjusted EBIT by 0%, -3%, and -4% over FY26, FY27, and FY28e, respectively. 

This led to a share price target increase from $4.00 to $4.15 for Endeavour shares, along with a retained buy recommendation. 

After closing yesterday at $3.95, Endeavour shares are roughly 6% below that target. 

Morgans provides an update

The team at Morgans have also adjusted their outlook on Endeavour shares following this week’s results. 

In a note out of the broker, it said there were no major surprises in EDV’s 1H26 result following the company’s trading update in January. 

While EDV continues to work on its refreshed strategy with further details to be provided at an investor day on 27 May, management confirmed that the combined Retail and Hotels portfolio will be retained. Management also noted that they will continue investing in Dan Murphy’s to restore its price leadership, while accelerating hotel renewals and electronic gaming machine (EGM) replacements.

Price target falls for Endeavour shares

The broker also reduced its FY26-28F underlying EBIT outlook by between 0-1%. 

Additionally, the broker lowered its price target to $3.65.

It has retained its hold rating. 

Based on this price target, Morgans is less optimistic on Endeavour shares, as the price target suggests a downside of 7.6%. 

Elsewhere, it seems brokers are mostly neutral on Endeavour shares. 

15 analyst forecasts via TradingView have an average price target of $3.83. 

That’s roughly 3% below yesterday’s closing price. 

The post What is Morgans’ updated view on Endeavour shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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