This is a well run company with a bright future and a lot of...

This is a well run company with a bright future and a lot of growth potential for the foreseeable future. In my view this is a minor hiccup for first half year numbers and the price you're paying today, is well below intrinsic value if you have a longer term view on the stock. Managements ability to acquire businesses at low multiples, is a big tick for me; as well as a good share base with very little or no impact on dilution for exisiting shareholders over the years and more importantly a ceo having an accounting background which is a must in this game.

There are a lot of stocks on the asx that are inflated and keep going up and some for no reason at all. ADH on the other hand still has some room to move much higher. I've got a longer term view on this just like my other holdings.

Below are some broker recommendations for ADH in the last week or so.. In the short term I'm somewhere between ord minnett and ubs targets, but either way the sp should be much higher than these levels. The market will eventually get it right.


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Ord Minnett - 28/02/2022 Hold Target: $3.30 Gain to target $0.44 Adairs December first-half result met January guidance but excluded one-off costs from the new national distribution centre which are expected to continue to drag in the June half. Supply chain disruption, store closures and higher freight costs combined with currency and inflation pressures to hit gross profit margins, and the broker expects these will continue through FY22. Ord Minnett says the highlight of the half was the establishment of its third retail operation, Focus on Furniture. Target price falls to $3.30 from $3.90 in FNArena's data base dated January. Hold rating retained. Target price : $3.30 Price : $2.86 (28/02/2022) Gain to target $0.44 15.38% (excluding dividends, fees and charges - negative figures indicate an expected loss).

UBS - 22/02/2022 Buy Target: $5.20 Gain to target $2.35 Adairs had already guided towards a soft interim result in January. UBS spotted no major surprises in the actual result, but does note the inventory build, the higher costs for doing business, as well as solid product margins. The broker has been of the view that consumers want to spend, and they will do so, hence UBS is positive about Adairs' near-term outlook too. The broker is forecasting an EPS CAGR of 16% over FY22-25. Short term estimates have dropped, which is reflected in the target falling to $5.20 from $5.70. Buy rating reiterated. Target price : $5.20 Price : $2.85 (22/02/2022) Gain to target $2.35 82.46% (excluding dividends, fees and charges - negative figures indicate an expected loss).

Morgans - 22/02/2022 Add Target: $3.50 Gain to target $0.65 Morgans makes no material changes to earnings estimates following Adairs' 1H results that were in-line with last month's pre-announcement. The Add rating is unchanged, while the target slips to $3.50 from $3.70 due to lower peer company multiples. Demand for the company's homewares is showing no sign of underlying weakness, according to the analyst, and future upside is seen from Mocka's new omni-channel strategy. Target price : $3.50 Price : $2.85 (22/02/2022) Gain to target $0.65 22.81% (excluding dividends, fees and charges - negative figures indicate an expected loss).