Buy - Super Retail Group (SUL)
*** GENERAL AVICE ONLY***
Trade Date: 20/02/2024
Description: Super Retail Group Limited (SUL) is the owner of four brands: Supercheap Auto, rebel, BCF and Macpac. These brands have positions in growing high-involvement lifestyle categories of auto, sports and outdoor leisure. SUL provides customers and nine million active loyalty club members with the option to experience brands whenever and however they choose – whether that’s through the network of 716 stores or via digital capabilities
Recommendation
Buy SUL
Entry price: $16.50
Target Price: $18.5 (+12%)
Stop Loss: $15.5 (-6%) Use a 10% trailing stop
Rationale:
SUL reports earnings on 22nd February 2024. SUL has a history of beating earnings. SUL has also been in a strong uptrend since the October lows in 2023. The majority of retail stocks have reported good numbers and have seen strong moves after release. With all these factors, its a decent probability that SUL should be trading higher after earnings later this week. SUL has has warrants available for trading, so those with a higher risk appetite can add leverage to this recommendation. Look to buy SUL around the $16.50 level over the next two trading sessions
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.