Consumer Idea Forum
MYST’s group of Consumer specialists offered a diverse set of ideas ranging from M&A beneficiaries, capital return stories, “Value” bellwethers and potential overearners. Three of the most compelling ideas presented included…
Amazon (AMZN) - Self-help story with renewed focus on costs. AWS growth slowdown is temporary. Trades below tough valuation. TP $4970 (100%+ upside).
Jack in the Box (JACK) - Capital light with high margins and minimal cyclicality. Mispriced at 12x P/E (vs. peers at 20x+). TP $250 (200%+ upside).
MGM Resorts (MGM) - GGR growth to stall and margins contract even without a recession. With no fat left to cut, a 1% decline in GGR could wipe out FCF entirely. Selling real estate portfolio was “insane” given the permanently escalating rent MGM must now pay. TP $20 (40% downside).
Edition: 135
- 13 May, 2022