Prior to FY24 results on June 25, Morgans lowers forecasts for Collins Foods after recent peer reporting by Restaurant Brands and YUM! Brands highlighted moderating sales trends in Australia over January to March.

Despite lowering the target to $11.50 from $12.40, (due to lower forecasts and after assuming a lower multiple), the broker believes the recent decline in the company's shares is overdone and retains an Add rating.

Sector: Consumer Services.

Target price is $11.50.Current Price is $9.30. Difference: $2.20 - (brackets indicate current price is over target). If CKF meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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