Premier Investments Ltd (ASX: PMV) shares have been having a tough time this year.
The retail conglomerate's shares are trading 47% lower than their 52-week high.
Though, some of this is attributable to the ASX 200 stock's divestment of its Apparel Brands to Myer Holdings Ltd (ASX: MYR).
Nevertheless, with the Smiggle and Peter Alexander owner's shares down in the dumps, is now the time to buy?
Let's see what analysts at Bell Potter are saying about this stock.
What is the broker saying about this ASX 200 stock?
The team at Bell Potter thinks that recent weakness could be a buying opportunity for investors. It notes that the company's FY 2025 results were largely in line with expectations. And while Smiggle continues to struggle, its Peter Alexander business has maintained its impressive form. It said:
Premier Investments' FY25 result was broadly in line with market expectations, with revenue a ~1% beat and Retail EBIT (Pre-AASB 16 ex-Peter Alexander UK) a ~1% miss to Consensus. The dividend returned with a beat to Consensus/BPe while the trading update for the first 6 weeks of 1H26 commenced with incremental positives.
The poor performing Smiggle brand has seen a marginal recovery at -4% on pcp for Aug-Sep (vs -5% on pcp in 2H25), while the outperforming Peter Alexander (PA) brand has maintained strong growth of +9.2% from Feb-Sep. Strong gross margins were noted however with a relatively higher OPEX base flagged with inflationary pressures.
Looking ahead, the broker has trimmed its earnings estimates to reflect its trading update. It adds:
We adjust our revenue estimates in line with the trading update as we factor in some conservatism for the comps cadence through 1H (slightly more challenging through to 2Q). […] Our gross margin assumptions see a ~40bps improvement while CODB % of sales reflects a ~30bps increase. Our underlying Retail EBIT estimates are -3.9%/-2.1%/-1.7% for FY26/27/28e.
Should you invest?
Bell Potter remains bullish on the ASX 200 stock and has retained its buy rating and $26.50 price target on its shares.
Based on its current share price, this implies potential upside of 35% for investors over the next 12 months.
In addition, the broker is forecasting a fully franked 5% dividend yield in FY 2026, which stretches the total potential return to approximately 40%.
Overall, the broker feels that its shares are undervalued compared to peers. Commenting on its buy recommendation, it said:
We view PMV as trading at a discount to our coverage, considering the Premier Retail division with two global roll-out worthy brands offering ~7% EBIT growth in FY26e and a P/E of ~12x excluding equity investments, land bank/cash while retaining a strong balance sheet supportive of M&A as attractive. Maintain BUY.
