With the Myer Holdings Ltd (ASX: MYR) share price just a fraction off its all-time low of 71 cents, one leading broker believes that now is the time to snap up the shares of the embattled department store operator.
According to a research note out of Citi on Monday, its analysts have retained their buy rating and 95 cents price target ahead of its full-year results release on Thursday.
The investment bank expects Myer to report a 3.6% decline in fourth-quarter like-for-like sales and core net profit after tax of $67 million.
This will be within Myer's full-year guidance range $66 million and $70 million.
Furthermore, its analysts predict a final dividend of 3 cents per share, bringing its full-year dividend to a fully franked 6 cents per share.
This works out to be a trailing yield of over 8% at Myer's last close price of 73.5 cents.
Should you invest?
There's no denying that a fully franked 8% dividend is attractive. As is the 29% upside that Citi sees in its share price.
This could arguably make Myer a decent option for investors that have a high tolerance for risk.
But as I'm quite bearish on Myer due to the growing popularity of online shopping and Amazon's imminent arrival in Australia, I'm going to sit this one out.
Instead I would rather focus on quality retail shares such as Noni B Limited (ASX: NBL) and Premier Investments Limited (ASX: PMV).
