Major supplier of bathroom products REH has seen a relatively small drop in its local business’s sales volume and they expect that to continue through 2023, no surprises there. While the company generates about 50% of its revenue from the US it’s clearly very exposed to the actions of the RBA over the last 12 months and when a building stock trading on a 26x valuation starts to contract the risk/reward is not attractive.
- We see no reason to buy REH at this stage of the cycle even though it’s corrected over 50%.
MM is neutral REH around $16
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