Santa Claus Rally, page-2

Why So Cheap??????

Bell Potter, this week.

Accent Group (AX1)

AX1 is a market leading retail and

distribution business of performance

and lifestyle footwear, apparel and

accessories in Australia and New

Zealand. Key retail banners include

The Athlete’s Foot, Platypus, Skechers,

Hype, Stylerunner, The Trybe and

PIVOT. AX1 also recently acquired

Glue Store which will accelerate the

company’s growth in youth apparel.

The company’s recent AGM update

indicated strong forward momentum,

including a material upgrade in

expected store openings in FY22, a

turnaround in Glue Store, continued

sales traction in Stylerunner which

we believe offers material growth

prospects, and the signing of a new

exclusive distribution agreement

for Reebok. AX1’s valuation is

undemanding with FY23 PE of ~14x,

and the dividend yield is an attractive

~5% (ff).

Buy, Price Target $3.05