** Citi cuts sales estimate for Australia's Nick Scali NCK.AX based against a backdrop of higher interest rates and a federal budget that was "not positive for housing retailers"

** Brokerage cuts EPS estimates for the home furnishing retailer by 2%-9% through fiscals 2026-2028

** Cuts target price by 26% to A$14.15, keeps "neutral" rating

** Citi expects gross margin expansion at company's ANZ segment but at a much lower rate, noting currency is likely to be a tailwind and the business typically does not excessively discount in periods of weaker demand

** Also trims estimates for UK business after British rival DFS Furniture's DFSD.L trading update revealed delicate consumer confidence

** NCK shares down 41.6% YTD