Whilst Morgans retains its Add rating for Booktopia Group following 1H results, the target is slashed to $1.85 from $2.78 after allowing for a de-rating of the sector and factoring in increased operating expenses.

The broker's FY22-24 earnings (EBITDA) estimates fall by -18-30% with an around -10%-13% increase in operating expenses the main culprit. Nonetheless, faith is retained that the group will win market share in the $2.6bn domestic book industry.

Sector: Retailing.

Target price is $1.85.Current Price is $1.14. Difference: $0.71 - (brackets indicate current price is over target). If BKG meets the Morgans target it will return approximately 38% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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