In his latest stock in focus for Money Magazine, Talaria Co-CIO Chad Padowitz discusses the Swedish consumer staple Essity including their defensive earnings, strong cash flow and leading market positions.
“In a base case scenario, there is a reasonably clean path to an 8%-9% per annum return, even with the margin going backwards towards the long-term average. The markets they operate in are relatively concentrated and they are the market leader or #2 player in 90% of cases with stable to growing market share for most,” Chad said.
Essity is attractively valued, with steady growth prospects and ongoing dividends and buybacks, offering a solid long-term return potential.
Chad Padowitz is the Co-Chief Investment Officer of Talaria Asset Management. He has more than 25 years’ experience in the financial services industry in the UK, South Africa and Australia.
His experience includes working as an analyst in the treasury department at HSBC Bank in London, in derivative reporting and analysis, and as an equities research analyst at First National Bank in South Africa.
Chad holds a Bachelor of Commerce from University of the Witwatersrand (South Africa), is a Fellow of the Financial Services Institute of Australasia and is a Chartered Financial Analyst charterholder. Chad co-founded Talaria Asset Management in 2018.
