SuperGroup

SuperGroup: Macquarie upgrades to O/p, TP $4.40, citing that its time for a pick-me-up. Stock has corrected far too much after posting a poor 3Q result. Poor 3Q but not a sign of structural deterioration; Competitive advantages in Myanmar intact; New branded consumer market, China, another growth avenue. Risk reward skewed to the upside, op. margins (+10% input costs) implies 5% downside vs. bull case, +43%. Trading at 18x PER 2014E vs 25x for it peers, believe the stock offers an attractive risk-reward pay-off.