ANN delivered a relatively benign report earlier this week, a big win compared to the past few years! While de-stocking dynamics continue to remain an issue, it has been interesting to see ANN recover this week after delivering revenue, EBIT and EPS all below consensus. This global manufacturer of gloves and other body-protection equipment looks capable of a strong bounce, but we caution most ASX recovery stories over recent years have been false dawns at best.
- A contrarian recovery story, and we believe the next 15-20% for ANN will be on the upside.
For ANN the FX movements are relatively inconsequential compared to getting its operational house in order.
MM is neutral to cautiously bullish towards ANN
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