RHC slipped 1.6% on Monday as it continues to plumb fresh decades lows – over 60% below what KKR bid for the business in 2022. We can understand why Macquarie have just listed it as one of their Top 11 picks as an ASX takeover target, and can see interest around $32, but interested parties are likely to have to pay well in excess of $40 to be successful, and that could prove an issue for potential suitors.
- We see no reason to fade the downtrend in RHC; it’s looked undervalued for a long time but keeps slipping lower.
MM is neutral towards RHC
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