PMV -3.29%: Hit hard today following a downgrade from UBS who moved to a NEUTRAL rating ahead of their 1H23 results on Monday, essentially the thesis being that it’s too expensive for the trends playing out across the sector meaning the risk/reward no longer stacks up. We hold PMV in our Emerging Companies Portfolio and are more positive than UBS, looking for ongoing strength in margins and a continuation of their strong Christmas period. As we’ve seen with other retailers like Myer & Super Retail, some are still performing well against a market that is very bearish on the consumer overall i.e. consensus expectations for consumer stocks sales are to be down -5% in 2H23 sector-wide (including PMV). While there is risk around results, we think owning PMV still stacks up, and hopefully, Mondays announcement supports that view.
MM remains bullish & long PMV
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