Light At The End Of The Tunnel?
Industry sales are expected to rebound gradually in 2H21, with more states shifting into phase two of the National Recovery Plan, to be bolstered by the SST waiver and pent-up demand. UMW is our preferred pick within the sector. All of the company’s divisions would benefit from the reopening of the economy. Another notable name within the sector is MBM Resources. Based on consensus forecast, the stock is trading at an inexpensive 6x 2022F PE. Maintain MARKET WEIGHT.