[Not held]

Lots of good discussion on Nick Scali's result and business outlook here, with some pretty bullish expectations. Thought folks might be interested in Graham Witcomb's critique of Nick Scali's result over at Intelligent Investor which makes for some pretty somber reading.

To paraphrase: "furniture sales are a lagging indicator and highly correlated with new home builds; building commencements have collapsed over the past 12 months; ergo expect lower sales going forward unless new store opens can temper things somewhat, but new stores are not being opened fast enough".

He concludes with a hold rating and asserts that even on a FY24 forward PE of 11, the stock deserves to trade at such a discount "due to its lacklustre growth prospects". (II currently recommend buy below $7.50 and sell above $12.50).

II analysts generally seem to be pretty conservative to my mind, but the analysis passed my uninformed sniff test and so figured it was worth sharing here as fodder for thought/discussion...