The Endeavour Group Ltd (ASX: EDV) share price has had a disappointing run of late. The stock has dumped 19% since its August high, with 12% of that fall coming on the back of the company's full-year earnings.
But Endeavour shares provide the key to what one top broker has dubbed an appealing business: Dan Murphy's.
The Endeavour share price is down 0.74% right now, trading at $6.74. That's despite the S&P/ASX 200 Index (ASX: XJO) posting a 0.07% gain.
Let's take a closer look at what top broker Macquarie reportedly likes about the relatively new ASX 200 stock.
Endeavour shares offer key to 'attractive asset': expert
It's been just 16 months since Endeavour shares hit the ASX following the company's spin out of supermarket giant Woolworths Group Ltd (ASX: WOW). And what a whirlwind it has been.
Endeavour operates Australia's largest retail drinks network and a portfolio of licensed hotels. In its short life as a stand-alone company, it has pushed through lockdowns, major floods, and inflation.
But drinks retail brand Dan Murphy's is one piece of the puzzle that Macquarie particularly likes. The broker was quoted by the Sydney Morning Herald as saying:
As a staple service and product provider with significant organic reinvestment opportunity we believe it is an attractive asset.
Describing the retailer as a "staple service" may mean the broker is confident it can push through current economic uncertainty.
The business has a growing loyal customer base, with the number of active My Dan's members growing by 15% to 4.5 million in financial year 2022. At the same time, its footprint grew to 258 stores.
Additionally, the broker has named Endeavour among the companies it expects to post positive updates at its upcoming annual general meeting (AGM), The Australian reports.
The company will host its AGM next Tuesday. A trading update on the company's performance in the first quarter of financial year 2022 is expected to drop the day before.
No doubt all eyes will be watching Endeavour and its share price next week.
