HVN plunged more than 8% after this week’s hawkish CPI, testing new six-month lows. The company recently said that the 13 interest rate hikes had curbed spending, with another one or two likely to hammer consumer confidence and purchases of big-ticket items sold by HVN. For example, we can all wait for new furniture. With interest rates at their highest level in over a decade and the RBA now considering whether it needs to hike again, we can see HVN’s sales remaining subdued while just the prospect of rate hikes weighs on people’s psyche.
- We aren’t tempted by HVN’s 16% pullback; the risk/reward, considering the macro backdrop, is still unappealing.
MM is neutral towards HVN ~$4.20
Add To Hit List
