BUZZ-Australia's Cettire falls, Citi initiates coverage with 'sell'

Reuters2024-11-18
BUZZ-Australia's <a href="https://laohu8.com/S/CTT.AU">Cettire</a> falls, Citi initiates coverage with 'sell'

** Shares of Cettire CTT.AX fall as much as 6.4% to A$1.39, set for worst day since early Nov - if current losses hold

** Citi initiates coverage on the online retailer with "sell" rating and price target of A$1.30 per share

** Broker says Cettire is facing a competitive environment that is fundamentally much less favourable than before due to tighter distribution channels, inventory buildup and weak demand

** Citi flags caution on co due to cyclical nature of business and risks pertaining to upstream supply chain in business model

** "Between the arrival of corporate daigou player Poizon out of China and risk of potential turnaround in Farfetch and YNAP, the competitive environment for Cettire has fundamentally changed for the worse" - Citi analysts

** Stock has lost ~50.9% so far this year

(Reporting by Archishma Iyer in Bengaluru)

((Archishma.Iyer@thomsonreuters.com;))

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