Does MM like currently PMV, LOV &/or SUL?
Hi James What's your latest thoughts on these consumer discretionary stocks - Premier Investments, Lovisa and Super Retail? regards Debbie
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Hi Debbie,
The Consumer Discretionary space has enjoyed a strong week rallying +4.5% making it the 5th best performing sector out of the 11. Overall, while we like the 3 stocks you highlighted, and own Premier Investments (PMV) in our Emerging Companies Portfolio, we still risk around discreti0onary retail ahead of full year results & the looming mortgage cliff, where fixed rate borrowers on low rates transition to materially higher rates.
- Premier Investments (PMV) $21.12 – our initial upside target is the $22.50 area.
- Lovisa (LOV) $20.16 – our initial upside target is the $22 area.
- Super Retail (SUL) $11.99 – our initial upside target is the $13 area.
For now, we prefer other areas of the market for exposure to the new “disinflation” market outlook for bonds i.e. not higher for longer!
