NHF rallied +2.9% on Monday posting fresh all-time highs in the process, February’s sharp sell-off following its disappointing earnings report has become a distant memory i.e. a ¬5% miss due to soft margins. The stock has been re-rated on the upside over recent months due to the positive combination of strong migration trends and benign existing resident claims. The stock isn’t cheap trading on an Est, 20.8x valuation for FY23 although a sustainable 3% fully franked yield does help the investment thesis.
- We are reticent to chase NHF above $8 but we wouldn’t entertain going short.
MM is neutral to bullish toward NHF around $8.50
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