Australia's Universal Store rises as Citi backs incentive structure

By Reuters News

** Shares of Australia's Universal Store Holdings UNI.AX rise as much as 1.8% to A$7.44

** Citi says FY27 incentive structure for the casual fashion retailer is "largely shareholder-friendly and strategically consistent," maintaining strong focus on EPS growth, capital discipline, and store rollout execution

** Brokerage says 20% return on capital employed (ROCE) hurdle for FY29 is reasonably demanding and should discourage management from taking excessive inventory risks or pursuing low-quality acquisitions

** Says FY29 EPS targets are reasonable for the co; current Visible Alpha consensus estimate of 68 AU cents/share falls comfortably within the 61-72 AU cents/share range

** Adds, CEO George Do's high exposure in UNI shares gives him significant personal presence and strong alignment with the co's success

** YTD, stock down 7%

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