Super Retail's sales momentum in the 3Q has been more resilient than Morgans had assumed in recent weeks, though gross margins slightly missed the broker's forecast.

After raising sales estimates and lowering gross margin expectations, Morgans increases its EPS forecasts for FY23 and FY24 by 3% and 4%, respectively. The target climbs to $15.50 from $15.00.

While the broker continues to expect tougher trading conditions in coming months, the Add rating is retained. 

Sector: Retailing.

Target price is $15.50.Current Price is $12.49. Difference: $3.01 - (brackets indicate current price is over target). If SUL meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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