Plumbing and hardware business REH has direct exposure to housing with over 50% of their earnings coming from the US with the balance in Australia, a perceived top in the interest rate cycle should act as a tailwind for the stock. We continue to believe this is an excellent medium-term business with both of its markets needing new homes. We are conscious that its already bounced strongly over the last 18 months reducing the risk/reward in the process and that the stock is not cheap trading on an Est. 29.6x valuation for FY23.
- We like REH short term looking for a test of $20, or +10% higher.
MM is mildly bullish on REH around $18
Add To Hit List
