What are MM’s thoughts on TWE?
With some good news flowing in relation to China trade bans easing.. thoughts on TWE?
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Answer
Hi Nilang,
We like TWE as a business, the company recently gave a good update and we think this has legs to rally further.
TWE noted costs were expected to remain in line with FY22 which should be crucial if a tougher economic backdrop is evident in 2023. They also have expectations of solid growth and EBITS margin expansion towards the 25%+ Group target in FY23 which implies they have pricing power – an important element as rates rise.
While we don’t hold the stock and think the price is ‘full’ at current levels any pull backs to the $13 region will be attractive. Consensus price target is $13.71.
