Myer Holdings Ltd (ASX: MYR) shares are looking cheap following the company's first half results, according to the team at Canaccord Genuity, which thinks they could more than double.
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Solid first-half result
Myer this week reported that first-half sales had jumped 24.5% to $2.279 billion. These results included the Myer Apparel Brands division for the first time.
The company said it had a record Black Friday sales period and that "total sales for the Group through December and January in line with the prior corresponding period."
The company's underlying net profit came in at $51.7 million, up 21.7%, and its statutory net profit came in at $40.3 million, up 32.8%.
Myer executive chair Elizabeth Wirth said it was a solid result.
Our 1H26 result reflects momentum across our business as we continue to implement the Myer Group Growth Strategy. Sales growth was achieved both in store and online, and our disciplined cost management allowed us to make targeted investments including in eCommerce, Marketing, Product, Merchandise and Supply Chain to deliver on our plan. The relaunched MYER one has a record 5.1 million active members, demonstrating the growing traction with our customers. The program provides valuable understanding of what our customers want and how they prefer to shop. These insights are helping inform our revamped offering across the key categories of womenswear and beauty, where we have welcomed La Mer, TOPSHOP and GAP to Myer, with more brand announcements to come.
Ms Wirth said in the second half the company would be focused on improving the loyalty program, "and continuing activities to integrate Myer Apparel Brands, as well as resetting our fashion and beauty offerings".
The company had net cash of $287 million at the end of the half.
Myer shares looking cheap
The Canaccord Genuity team said the results were "largely as expected", albeit with some softer-than-expected trading through December and January, "taking the gloss off what could have been a defining result''.
They added:
Management seemed confident in the near-term trajectory, noting multiple initiatives are now well underway and that the business has been working with a tough consumer for some time now. Brand ranging and exclusivity dynamics are progressing at pace with a statement of the day being "It's more around looking at the data and understanding where we've got trust and where we have a right to play.
The Canaccord team said the foundations of the business look firmer with operating costs under control, and an improved second half expected.
Canaccord has a price target of 73 cents on Myer shares, down from 79 cents, but still well above the current share price of 30.2 cents.
The company is currently valued at $501.9 million.
