Kathmandu has started to show some market resilience following a disappointing FY15 performance,
weathering a challenging and competitive retail environment. Though in early stages, we believe that
KMD’s growth strategy is promising, and has helped deliver a positive FY16 result. As the roll out
continues, we expect the company to see near and long term benefits.
At the current share price of $1.81, KMD offers 17% upside potential relative to the IRESS consensus
target price of $2.12. Coupled with an IRESS consensus dividend yield forecast of around 6%, KMD
offers a total potenial return of ~ 23%.