ABC supplies construction materials such as cement but even through the building boom, it’s been the “dog” of the sector i.e. MM is never keen on stocks that cannot rally in good times. The stocks not overly expensive trading on an Est. valuation of 12.3x 2022 earnings plus it’s also estimated to yield more than 5% over the next 5-years but when the company reports in a few weeks’ time the risks again feel like they could be on the downside, particularly given the backdrop of sharply higher energy prices.
- We sees no reason to buy ABC ahead of its result later this month.
MM is neutral ABC around $2.60
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