SUL is a stock MM has liked for a while, it owns Supercheap Auto, Rebel Sport, BCF & others, last month it beat market expectations with its 1H earnings with sales up 11% and a significant drawdown in inventory which helped margins. In our opinion, the stock is not too expensive trading on a 10.8x valuation plus its forecast to yield 6.8% over the next 12 months
- We can see SUL drifting lower with the Consumer Discretionary Sector but it’s a quality operator that we like into weakness
MM likes SUL back around $11
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