Plumbing and hardware business REH surged higher in February following its strong HY24 result, which demonstrated strong profit growth and led to upgrades from Morgan Stanley, Morgans, and UBS. The stock has been consolidating over recent months as bond jitters weighed on stocks, but with these slowly dissipating, a break to fresh all-time highs looks and feels almost inevitable. Unfortunately, the risk/reward isn’t compelling close to $28.
- We’re targeting the $30 area for REH, or 8-10% higher.