Azzet reports on three stocks with price moving updates today.
Endeavour Group slips on underwhelming update
Shares in Endeavour Group (ASX: EDV) were trading around 4% lower heading into lunch after the owner of the Dan Murphy’s and BWS retail liquor chains told the market that its forecasted group profit before tax of $400 million to $411 million for first half FY26 was well below analysts’ expectations.
It is understood that due to heavy discounting on sales, group profit before tax at the mid-point was down 7.5% versus consensus expectations.
Today’s market update adds to the angst of long-suffering shareholders who are yet to see any demonstrable signs that, five years since its spinoff from Woolworths (ASX: WOW), it can finally stand on its own two feet.
Endeavour lifted first-half retail sales to $5.5 billion, up 0.3% with price cuts and promotions underpinning stronger second-quarter growth.
Dan Murphy’s and BWS sales were up 0.7% for the half and 2.2% in the second quarter, delivering a record December and new daily sales high on Christmas Eve.
However, sales momentum was not reflected in profitability, with retail gross profit margin expected to fall about 0.85 percentage points.
Retail earnings before interest and tax is forecast at $323 million to $328 million, down from $370 million a year earlier.
Meanwhile, the hotels business remains the outperformer, with sales up 4.4% to $1.2 billion and earnings expected to come in between $271 million to $275 million.
Overall, group earnings (before significant items) fell to between $555 million and $566 million for the half - down 4.9% to 6.7% from $595 million a year earlier.
Given that the alcohol retail giant maintains a "wide-moat" status with approximately 40% share of the Australian liquor market, the market has big expectations of recently appointed CEO Jayne Hrdlicka who ha’s been charged with turning the group’s reported a 16% slump in net profit to $426 million full year FY25 around.
While it is too early pass to judgement on Hrdlicka’s time as CEO, she needs some quick wins to reignite market enthusiasm for the stock.
Since trading as high as $7.55 in July 2022, the share price has bounced 50% lower.
Its continued connection to Woolworths has been a drag on the stock .
Woolworths completed the sale of its remaining 4.1% stake in September 2024, but due to technology-related setbacks, Endeavour told the market last year it would delay its full technology separation from Woolworths systems to 2030.
While promotional decisions have clearly generated positive sales results for Endeavour, Hrdlicka was quick to cite the pricing pressure amid deteriorating customer confidence that has also plagued the group’s competitors.
“In a competitive market landscape, we have focused on reinforcing customer confidence in the value we offer across all channels, particularly in Dan Murphyʼs unbeatable price and customer experience,” she said.
While management has been quick to boast that since September, Dan Murphy's and BWS have together delivered four consecutive months of sales growth, the market wants to see greater profitability.
An inability to deliver better returns may see frustrated investors agitate for the hotels portfolio to be spun-off into a separate entity.
Meanwhile, Endeavour also announced that Paul Carew will step down as ALH Hotels Managing Director this month to pursue other opportunities.
Pinnacle Drinks Director Paul Walton has assumed the role of ALH Hotels Managing Director on an interim basis.
Endeavour Group has a market capitalisation of $6.6 billion; and the share price is down 11% over one year.
The stock’s shares appear to be in a strong near-term rally within a longer-term bearish trend.
The 200-day moving average is downward sloping and implies that there has been limited demand for this stock.
The consensus recommendation is Hold.
L1 Group rises on market update
Shares in L1 Group (ASX: L1G) retained some of their early morning gains, with the share price up around 1.3% at noon after the fund manager reported assets under management (AUM) of $17.64 billion as of December 31, up around $700 million on the previous quarter.
The increase is being attributed to a positive investment performance and strong inflows into the L1 Global Long Short strategies, partly offset by legacy outflows from Platinum-branded products, mainly from the Platinum International Fund.
The bulk of the increase in L1 International AUM and reduction in Platinum branded AUM relates to the transition of the management of the Platinum international equity funds to L1 International.
Management believes the announcement highlights the continued demand for L1 Group’s investment strategies and the firm’s ability to generate returns for its investors.
L1 Group also provided an update on its performance fees for the period ending 31 December.
The group expected realised performance fees to total between $37 million and $39 million, including about $32 million of in-perimeter performance fees.
While the L1 Group brand remains relatively new to the market, the $16.5 billion fund manager resulted from the merger between L1 Capital and Platinum last September.
The merger followed another tough year for Platinum Asset Management with AUM falling by 30% to $10.8 billion, reducing adjusted operating profits before tax by 31% to $63.5 million.
L1 Group Limited is a Melbourne-based funds management group which oversees numerous investment strategies including long/short equity, international equities and other affiliated boutique strategies.
Through its L1 Long Short Strategies, L1 International (which now includes the Platinum International Fund) and other related offerings, the group manages diversified assets for investors across domestic and global markets.
During his inaugural address to shareholders last November, L1 Group CEO, Julian Russell warned that fund outflows would continue for 18 months.
The four growth pathways he outlined for the firm ahead included:
Growth of existing funds through performance and flows.
Extension strategies using our existing investment teams to expand high-quality strategies such as the recently launched L1 Global Long Short strategy.
Incremental joint ventures where we can attract new talented teams to launch products.
Selective M&A in situations where there is compelling logic and value accretion.
As the standout of the seven fund managers listed on the ASX, L1 Group’s share price has risen 35% since the two fund managers merged last September.
L1 Group has a market capitalisation of $2.8 billion; and the share price is up 6% in the last week.
The stock is in a strong bullish trend confirmed by multiple indicators.
Specifically, a five-day moving average of the stock price is above the 50-day moving average.
The is no consensus recommendation for this stock.
Sun Silver jumps on high-grade silver-gold system at Maverick Springs
Shares in Sun Silver (ASX: SS1) were trading around 4% higher in afternoon trading after the silver explorer reported further thick, high-grade drill intercepts at its Maverick Springs project in Nevada.
Reinforcing the scale and continuity of its silver-gold system, recent drilling returned intervals exceeding 120 metres at grades above the existing resource average, alongside high-grade gold-rich zones and elevated antimony.
The company told the market the results aligned well with its geological model and continued to build confidence in the project’s 539 million-ounce silver-equivalent resource.
“Drilling at Maverick Springs continues to deliver thick, high-grade silver-gold intercepts, confirming the scale and continuity of the system,” Sun Silver managing director, Andrew Dornan said.
“With silver trading above US$$83/oz, its inclusion on the U.S. Critical Minerals List, and tightening controls in China, Maverick Springs is well positioned to benefit from both strong market fundamentals and strategic supply-chain tailwinds.”
Today’s update coincides with strong uptick in the silver price following its addition to the U.S. critical minerals list, which highlights Maverick Springs’ strategic positioning.
Nevada is a globally recognised mining jurisdiction which was rated as the Number 1 mining jurisdiction in the world by the Fraser Institute in 2022.
The project hosts a JORC Inferred Mineral Resource of 237Mt grading 45.5g/t Ag and 0.30g/t Au for 347.2Moz of contained silver and 2.25Moz of contained gold (539Moz of contained silver equivalent).
The deposit remains open along strike and at depth, with multiple mineralised intercepts located outside of the current Resource constrained model.
Silver had a standout year in 2025 with the prices rising around 145% over the past year.
Price growth reflects growing industrial demand from silver’s use in photovoltaic solar panels, electronics manufacturing, electric vehicle components and medical applications.
Sun Silver has a market capitalisation of $268 million; the share price is up 204% in one year and 32% in the last month.
The stock appears to be in a strong bullish trend confirmed by multiple indicators.
Specifically, a five-day moving average of the stock price is above the 20 and 50-day moving averages.
There is no consensus recommdenation for this stock.
his article does not constitute financial or product advice. You should consider independent advice before making financial decisions.