Citi Reduces Super Retail Group Forecast and Price Target
On 12 June 2026, Citi announced a 5% reduction in its fiscal 2027 earnings forecast for Super Retail Group (ASX:SUL) and cut its price target to A$14.20. The downgrade reflects the retailer’s updated corporate and project cost guidance, which Citi says is higher than previously expected.
Super Retail Group disclosed that it intends to increase its store portfolio from the current 790 locations to more than 900 stores by 2031. The expansion will focus on its key brands, including Rebel and the Supercheap Auto/BCF network, which Citi believes could offset competitive pressures if the growth plan is executed effectively.
As of the latest market close, Super Retail’s share price has declined 23% year‑to‑date, a movement Citi attributes to the heightened cost environment and the revised earnings outlook.
Key Figures
- Earnings forecast cut: 5% for fiscal 2027
- New price target: A$14.20 per share
- Store count target: >900 by 2031 (up from 790)
- Year‑to‑date share decline: 23%
Implications
Citi’s action signals heightened cost pressures for the retailer while acknowledging longer‑term brand opportunities. The price‑target reduction and earnings downgrade suggest a more cautious near‑term valuation for Super Retail Group.