Can I have your view on SUL and HLS please?
Hi Market Matters Team Can I have your view on SUL and HLS Would you be holding until they report? Do you expect their outlook to be positive? regards Deb
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Answer
Hi Deb,
We don’t own either Healius (HLS) or Super Retail Group (SUL) across any of our portfolios hence I cannot comment on whether we would hold through their coming reports:
Healius (HLS) $2.92 – the $2bn merger of HLS and ACL is looking less likely to proceed by the day but under $3 we see some value returning to the stock, its not presently on the MM radar – the company reports on the 30th.
Super Retail Group (SUL) $21.11 – SUL is one of our preferred discretionary retailers courtesy of its diverse exposure to the consumer through the likes of Super Cheap Auto, Rebel and BCF. However while we are warming to the discretionary retail sector the stock doesn’t feel overly cheap, and inline with our AM report on Friday (here) we believe there is a concerning level of optimism baked into the cake ahead of results on the 17th. We are not interested in chasing retailers ahead of these updates, instead, we have a clear preference to buy if their guidance misses the mark, and the shares re-rate lower.
