Investors in well-known ASX retail stock Myer Holdings Ltd (ASX: MYR) have endured a tough year.
Since the start of January, Myer shares have plunged by 62% to trade at $0.47 at the time of writing.
This compares with a 5.4% rise for the All Ordinaries Index (ASX: XAO) across the same timeframe.
Not only that, but Myer shares reached a 52-week low of $0.39 each just last month, a far cry from last year's high of $1.27 per share.
Much of this weakness appears to reflect an underwhelming operating performance in recent months.
Let's take a closer look at how 2025 unravelled for the company.
Image source: Getty Images
What happened?
In January, a trading update rattled investors as Myer reported softer sales and a decline in operating gross profit amidst a challenging retail environment.
The market reaction was swift, with Myer shares tumbling by more than 20% on the day of the announcement.
Sentiment deteriorated further in September following the release of the company's FY25 results.
Here, Myer shares dropped by 25% on the back of a small sales increase but a significant decline in operating earnings (EBIT).
The ASX retail stock also opted not to declare a dividend, citing ongoing cost pressures and difficult retail conditions.
However, fast forward to today and investment bank Canaccord Genuity believes the outlook for Myer shares could be recovering.
Let's dive into the reasons for the broker's bullish views.
Why Myer shares could storm higher
Senior analyst at Canaccord, Allan Franklin, appeared to strike an optimistic tone following an update at Myer's AGM on Thursday last week.
The company reported that total sales for the first 19 weeks of FY26 lifted by 3% from the same time last year.
This performance marks a faster pace of growth than Canaccord's modelling.
The broker also noted that like-for-like sales for Myer Retail and Apparel Brands both showed an improvement.
According to Canaccord:
Myer's AGM commentary displayed steady progress on several fronts (engaged customers, brand curation, omni-channel execution) and pleasingly stronger-than expected YTD sales growth. Both Myer Retail and Apparel Brands look to have traded well through Oct/Nov ahead of peak trading.
Canaccord also pointed to encouraging momentum in Myer's loyalty program.
The retailer has added 475,000 new MYER one members in the first half of FY26 so far, with around half under the age of 35.
Another positive includes the expansion of Myer's partnership with Commonwealth Bank of Australia (ASX: CBA), allowing CommBank awards points to be transferred to MYER one.
In addition, JD Sports Fashion PLC (LSE: JD.) and The Dom adopted MYER one as their loyalty platform.
That said, Canaccord trimmed its earnings forecast for Myer shares, largely reflecting a more cautious view on the company's gross margins.
Upside potential for Myer shares
Overall, Canaccord appears positive on Myer's prospects.
The broker has retained its buy rating and set a target price of $0.79 per share.
This implies 68% upside potential from $0.47 per share at the time of writing.
