Q: Hello,
Do you think the current drop in share price is a good entry point or is it better to wait? This is for a starting position, I don't have any grocery sector holdings in my portfolio.
Thanks
Do you think the current drop in share price is a good entry point or is it better to wait? This is for a starting position, I don't have any grocery sector holdings in my portfolio.
Thanks
5i Research Answer:
MRU did miss estimates, but the dip certainly makes it more interesting and buyable. Pharmacy growth looks good, and the dividend still has room for growth. 17x earnings we think is a quite-acceptable valuation considering its long term stability and market share positioning. We would aim for a three-year holding period at least, but we would be comfortable buyinh.