Stock price when the opinion was issued
Trades around 20x PE. Options: implied volatility is over 30, so you're paid twice as much as the broader market. Because the stock has been under pressure for a long time, these options are more expensive than others. Currently, at May $70 puts you can get $3.90, an attractive 5% return if shares stay flat over 3 months.
Added recently around current level of $77. Online push didn't work; it can be part of the business, but not the main part. New CEO has gone back to basics. Huge FCF, minimal debt. Incredibly well positioned. Chance to buy on sale the world's best business in the sector.
Went from growth to value very quickly. Tremendously powerful brand and business economics. Phenomenal balance sheet. Hit really hard. Discretionary item. Softness in consumer and in China. Lack of product innovation.
(Analysts’ price target is $92.24)In the end, brand remains intact. Trades around 20x earnings. Earnings will get hit hard this year, and so the multiple looks high. Attractive turnaround. Likes the new CEO. Can regain its crown. Yield is 1.7%.