The Accent Group Ltd (ASX: AX1) share price is creeping lower throughout afternoon trade.
Whereas the S&P/ASX 200 Index (ASX: XJO) has posted a loss of 0.4%, Accent shares are 9% into the red.
What’s in front of Accent shares today?
There is no market sensitive news that has been released for the Accent share price today. However, Accent shares have been edging lower since the release of a broker note from Citi last week.
The investment bank downgraded its rating on Accent shares from neutral to sell and also slashed its price target by almost 20% to $2.50.
Given the effect on retail sales from ongoing lockdowns, Citi estimates there are risks to Accent’s sales results and supply chain.
For instance, footwear manufacturers have had their supply chains impacted by Covid-19 lockdowns in countries with high footwear production.
Moreover, the investment bank believes Accent will realise a same-store sales decrease of 7% for the first half of FY22
As such, Citi feels that Accent’s share price isn’t accounting for a number of potential risks to the company. and see’s valuation as an issue.
The company’s last market sensitive update was back in May, where it bought Glue Store. Therefore, it stands to reason that investors are somewhat placing downward pressure on the Accent share price after this downgrade from Citi.
For instance, Accent has given away 20 cents per share on the charts since this equity report from Citi, and 22 cents/share since the close on Friday.
Accent share price snapshot
The Accent Group share price has faced headwinds this year and has climbed 4.8% since January 1. However, Accent shares are still up 57% over the past 12 months.
This return has beaten the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% over the past year.