Does MM like Collins Foods (CKF) after its dramatic plunge?
Is Collins Foods are good buy following it's recent $2.39 price drop. ?
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Answer
Hi Rob,
We’re still not big fans of CKF even after its dipped under $8 this week, the markets panned the stock after management warned of significant inflationary headwinds in 2H23/FY24E which creates a challenging growth outcome at best.
CKF is trading on a 1-year forward PE of 18.7x, which in our view presents a neutral risk/reward picture even following the stocks aggressive re-rating, however, a few directors have been buying into the current weakness which is clearly a positive sign.
