Originally Posted by
Rawz
$100m npat for FY22 would be acceptable.
Deserves $3 SP = ~10 p/e.
Guru Tony Alexander said this in his free weekly update last week:
"With regard to retailing my rule of thumb would be this. The more your sales surprised on the strong side over the past two years the more you should downgrade your expectations for the coming two years. We consumers have been on a spending binge for certain things including home electronics, furnishings etc. as we have improved our nests. But we only need a new spa every few decades, we will be reallocating money to offshore travel, our house prices are now falling, and our incomes are failing to keep up with rising prices for the goods and services we typically consume. Throw in rising mortgage interest rates but only minimal increases in bank deposit rates and you get a scenario where retail spending is going to be highly constrained across most sectors in the coming two years."
Maybe 10 p/e too generous?