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Booking Holdings Inc. (BKNG)
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lululemon athletica inc. (LULU)
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Domino's Pizza Inc (DPZ)
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Airbnb Inc. (ABNB)
Q: Would you initiate a position here? This company rarely falters the way it has recently. Is this a compelling buy, if so, please rate it on scale of 1-10, 10 being a high conviction. Please rank it amongst your favourites in consumer discretionary.
Thank you.
Thank you.
5i Research Answer:
We think it is a good company. Growth has been quite consistent. Growth does appear to be slowing a bit, however. This, combined with a relatively-high valuation of 25X earnings, makes it not overly compelling today. Debt is still an issue, at about 7X cash flow. Earlier this year the company decided to slow its rate of new store openings, and this shifted investor sentiment. We think one can wait a bit on this one. We would see BKNG, LULU, ATZ, ABNB has having more growth potential from current levels.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ABNB.