Q: I have a question about Altus Group Limited. In February 2022 you said “we think it is attractive in the low $50s.”. Is it even more attractive now it’s in the low $40s? If not, why not?
5i Research Answer:
The recent quarter was mixed, with revenue ahead of estimates but earnings missed. The stock has seen a few downgrades and is down 20% YTD. Yield is 1.4% now but it is still expensive on P/E but more attactive on a cash flow basis. Still, sales rose 14% in the quarter and considering macro pressures and the real estate sector we would consider this decent. Once rates stabilize we would expect the stock to catch a better bid. While not risk free, it does look better now, of an investor has a two year time frame or more.