ANN has fallen over 50% from its 2021 high back down towards its Covid lows, I’m sure most investors would have expected more from a business ideally positioned to benefit from the globe’s new health & safety environment as we deal with continually evolving new strains of the pandemic. Earlier this year we saw downgrades as rising costs have flowed down to decreasing margins. We aren’t fans of companies who cannot rally on good news and that’s very much been the case with ANN over the last 2-years.
- The stock feels fairly cheap trading on an Est. 14.2x earnings for 2022 but until the company can start turning the ship around we’re now leaning towards the neutral corner i.e. we prefer other stocks in the sector.
MM is neutral ANN
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