Safety and protection company ANN is no stranger to bad results having delivered a few in its time. Its movements over the last 6 months haven’t been good and its “bounce” fairly muted but combined with its history and more than 40% revenue from the US, we see this as a risk. The stock made a new high in February after the personal protective equipment (PPE) provider delivered strong 1H revenue and upgraded its FY25 earnings guidance. Still, it’s been downhill ever since, with the stock correcting 25% because the company is very exposed to US tariffs. Downgrades followed from many analysts, with the stock now carrying an uninspiring 8 Holds and 1 solitary Buy.
ANN is looking to pass on much of the tariff costs to the consumer, but the uncertainty has weighed on the stock, and we’re inclined to think that much of this bad news is already built into the share price. Markets hate uncertainty with tariffs, and the Trump administration is bringing plenty of both, but ANN’s correction is already pricing in plenty of bad news.
- We wouldn’t consider ANN into next week’s result, but it doesn’t feel like the market will be caught “too long” if it disappoints.
MM is neutral towards ANN around $31
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