Q: It looks like Teck.b share price has nowhere to go but up? Would you agree?
5i Research Answer:
This can be dangerous thinking: any stock can go down, for any reason, or even no reason, anytime. But we do like the risk/reward scenario here. TECK.B is cheap, and also more or less 'in play'. We imagine Glencore raises its bid. With no deal, the stock is vulnerable in the short term, but at 9X earnings with leverage to an economic recovery and a strong balance sheet, we think it is still attractive without a deal.