Morgan Stanley analysts perceive potential for improvement in Reject Shop’s (ASX:TRS) business roll-outs and market competition.

They predict new yet experienced management and a straightforward strategy could aid the discount retailer in the conversion of AUD 900 million of annual sales into heightened earnings growth.

They forecast Reject Shop to achieve AUD 15.8 million EBIT in FY24, aligned with consensus earnings estimates.

The brokerage issued a statement that an AGM update and the Christmas trading sessions will provide evidence of the business’s strength.

So far this year, the stock has seen a rise of 31.8% up to the most recent closing.

Reject Shop is an Australian discount retailer.