MM’s thoughts on LOV, PMV and SUL please
Hi MMatters Team After the latest falls in retail - Are the risk reward getting close to buying Lovisa, Premier Investments and Super Retail? If so what order of preference for these 3.
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Answer
Consumer facing stocks have been out of favour since the RBA hiked rates on Tuesday and the accompanying hawkish rhetoric could see that trend continue over the next few months. In terms of the 3 stocks mentioned I have listed them below in order of preference plus our current optimum entry levels where appropriate:
- Super Retail Group (SUL) $11.04 – This would be our first pick with $11 our initial accumulation level.
- Premier Investments (PMV) $21.16 – we own this solid retailer in our Emerging Companies Portfolio, and we like it ~$21.
- Lovisa Holdings (LOV) $18.19 – LOV has been smacked over the last few weeks and we can see current momentum taking the stock down another 10-15%, we like the overall business but labour is a high proportion of their overall cost base and they will be impacted most by the recent changes, which makes us more cautious here.
