This plumbing supply business has struggled since missing quarterly sales expectations in late October which was unfortunately also accompanied by downbeat rhetoric. This has been a tough year for stocks that have missed earnings but RWC is slowly but surely starting to scan cheaply with a valuation of 10.8x FY23 earnings plus an anticipated 5.8% yield over the next 12 months.
- We believe this is a good recovery stock with the risk/reward looking attractive into further weakness.
MM is neutral RWC around $2.80
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