Myer’s share price could double and investors are underestimating the prospects that the department store could become a powerhouse as it transforms into a much larger retailer with a portfolio of brands.

That’s the view of analysts at Morgan Stanley, who told their clients this week that Myer’s share price could stage a turnaround and hit $1.10 if its new leadership, led by former Qantas Loyalty chief executive Olivia Wirth, could pull off their strategy.