Endeavour Group's Q3 sales growth was a slight beat versus Morgans forecast, but was offset by higher FY23 capex and net interest expense guidance.

Management noted trading conditions so far in Q4 are consistent with Q3.

The broker observes a lower contribution from gaming (higher margin) in the sales mix and lowers its Hotels margin assumptions accordingly. The target falls to $7.30 from $7.80. Add.

Sector: Food & Staples Retailing.

Target price is $7.30.Current Price is $6.53. Difference: $0.77 - (brackets indicate current price is over target). If EDV meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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