Reece is under Algo Engine buy conditions. 1H22 result was above expectations, with underlying EBITDA increasing 14% to $397m. US performance was a key highlight and we expect 5 -7% EPS growth into FY23.
The stock trades on a forward yield of 1.5%.
Reece is now under Algo Engine buy conditions.
The FY21 result highlighted strong sales trends in both Australia and
the US, however, costs in the US dampened the operating profit.
The market is looking for 10% EPS growth into FY22 and FY23 which places REH on 30X forward earnings and 1% dividend yield.
Update: 18/9
Reece is now under Algo Engine buy conditions.
The FY21 result highlighted strong sales trends in both Australia and
the US, however, costs in the US dampened the operating profit.
The market is looking for 10% EPS growth into FY22 and FY23 which places REH on 30X forward earnings and 1% dividend yield.
REH achieved a 4% increase in sales to $6,271m, 11% increase in underlying EBITDA to $720m and underlying NPAT increased 25% to $285m.
Reece beat market consensus across all numbers, however, the valuation is looking stretched at 44x earning.
Be patient and wait for the next Algo Engine buy signal.
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