ANN has more than halved from its mid-2021 high when in the middle of the pandemic people were stocking up on rubber gloves and hand sanitiser, but not much of either is in people’s shopping carts today. The most disappointing factor remains that the stock is now trading below its pre-Covid levels even as we have become a more health-conscious society. As we often say MM aren’t fans of companies who cannot rally on good news and that’s very much been the case with ANN over the last 2-years.
- We believe ANN is reasonably priced trading on an Est. 16x earnings for 2023 but margin expansion is needed for the stock to become compelling.
MM is neutral ANN is around $227
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