Brokerages cut earnings view for Australia's Endeavour, see margin pressure

Jefferies and Citi cut earnings estimates for Australia's Endeavour Group EDV.AX, citing margin pressures across co's hotels and liquor retail businesses

Jefferies cuts FY26 NPAT by 9%, while Citi cuts its FY26 and FY28 NPAT forecasts by 8% to 7%

Hotel and liquor shop owner reported 4.4% sales growth in first-quarter on October 31

Jefferies notes first-quarter sales growth in co but warns that sales remain below levels needed to avoid operating deleverage, expecting increased D&A costs in hotels segment, and further margin contraction in retail segment

Citi also expects compression in retail margins, and adds it sees slower topline growth and inflationa-driven cost pressures in co's hotels segment

Shares trading flat currently; down 13.1% YTD