At the start of the month, we felt JBH was looking good as a contrarian play around $43 however since recession fears have increased significantly lower prices feel almost inevitable for this leading retailer. The stock remains relatively cheap on an Est. P/E of 9.3x for 2022 while its fully franked dividend due in August remains attractive – one for patience and our “Hit list”. Basically, we feel economic concerns will drag the stock back towards $35 where its valuation will become very attractive.
MM now likes JBH in the $35-6 area
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