My bull case for HSN is after the last few years of deleveraging they are due an acquisition which I believe will be a catalyst for a rerate. I'd be surprised if there is no acquisition this year, more likely in the next few months.
While we wait HSN should generate roughly $50M in free cash flow on about a $1 billion market cap equating to around a 5%+ FCF yield. For a defensive, sticky client business i think this is reasonable especially if we get rate cuts at some point in the next 24 months.
The share price has been consolidating also recently. I do wish they'd cut the unfranked dividend and use it for buybacks or to fund the acquisition
It's not the highest quality serial acquirer as highlighted in the attributes here on page 19 - req.no/wp-content/uploads/2023/12/REQ-Deep-Dive-Acquisition-driven-Compounders-December-2023.pdf - but still decent.