Jefferies cuts PT on Nick Scali as housing weakness weighs on earnings

** Jefferies cuts its price target on Nick Scali NCK.AX to A$12.50 from A$16, and maintains a "hold" rating, as weaker housing conditions and higher interest rates weigh on sales

** Brokerage cuts FY27 underlying net profit forecast by 30.2% to A$51 million from A$74 million

** Says luxury furniture retailer's H1 underlying net profit forecast of A$28 million - A$32 million is about 20% below Visible Alpha consensus expectations

** Australia and New Zealand written orders fell 15% YoY in Q1, with Jefferies citing weak housing conditions and subdued consumer confidence

** Brokerage says further interest rate increases could prolong the sales weakness and make a near-term earnings recovery less likely

** However, says UK expansion is gaining traction, with first-quarter written orders up 29%

** YTD, stock down 39.7%, as of last close