Q: Hello 5i team,
PBH has had a less than stellar quarter but you mentioned in a previous question that they stand to do well in the coming year.
The stock is getting close to where my entry point was, should one add or hold?
Thanks
Andrew
PBH has had a less than stellar quarter but you mentioned in a previous question that they stand to do well in the coming year.
The stock is getting close to where my entry point was, should one add or hold?
Thanks
Andrew
5i Research Answer:
PBH continues to pay a yield of 3.3%, and analysts expect good sales and earnings growth next year. Sales growth has slowed, but it continues to be a high-quality company with a strong management team, and it trades at a cheap valuation of 16.9X forward earnings and 0.6X forward sales. Its price has remained flat since mid-2017 and we feel that this can represent an opportunity as its valuation has contracted and it operates in a defensive sector. We continue to like the name and would feel comfortable slowly adding to the name as it finds price support at these levels.