BUZZ-Citi sees lack of immediate upside catalyst for Premier after Myer deal

Reuters10-31

** Analysts at Citi downgrade stock rating on Australia's Premier Investments to "neutral" from "buy"; keep PT at A$36

** Australian department store owner Myer will buy retail billionaire Solomon Lew's Premier Investments' apparel brands business, in a deal valued at A$863.8 million ($568.38 million)

** Citi does not see an immediate upside catalyst for PMV from the deal and expects some risk of sell-down as Myer shares are to be distributed

** Brokerage does not see a rebound in trading conditions for PMV just yet, so there is a lack of actionable upside to participate in the near term

** Myer will issue Premier 890.5 million new shares in the retailer under the deal

** PMV has risen 20.6% YTD, as of last close

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com))

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