Manufacturer of consumer and industrial products GUD returned to the winners enclosure last month surging over +20% after the successful sale of Davey Water Products cleaning up the business on many fronts. GUD’s FY23 result saw earnings roughly in line with expectations, and while the result and outlook commentary did not imply significant upgrades for FY24, the share price saw a re-rating as cash conversion exceeded expectations and gearing met the ~2.0x company target as inventory normalised.
- We believe GUD has executed very well in FY23 but it doesn’t look overly exciting into FY24 & 25.
MM is neutral to bullish GUD around $12
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