I'm mainly looking at Herman Miller, steelcase, and knoll. All of which still haven't recovered from march lows. Going to focus on herman miller since it's the one with the largest market cap of the three
Herman miller has barely recovered from march lows, and is currently sitting at -42% YTD.
I think there are 2 main driving forces here why it hasn't recovered as much: 1) Supply chain disruption from factories closing down due to the virus 2) people thinking offices closing down means a substantial drop in Herman Miller's revenue
I think supply chain issues have been fixed for months now, evident from the fact that steelcase, their competitor, has recalled most of their furloughed workers back in May. I think the work from home switch AND the remote online learning for schools will drive the retail orders up the roof. Many office workers received substantial work from home stipends to beef up their work from home setups (google for example gave their employees $1k for office equipment).
interest over time: https://i.imgur.com/mkqG3D0.png
if you go to their website their flagship product, the herman miller aeron has a delivery date of 4-8 weeks out which I assume means they have been getting flooded with orders: https://i.imgur.com/C16JvXH.png
Lastly, the price target for MLHR has been recently bumped to $31 representing a 30% upside from current valuation
Are they doomed because of the shutdown of corporate offices, or is there actual upside here?
Submitted June 19, 2020 at 05:14PM by Chotothegoth https://ift.tt/3ehmDe9
