Q: Hi All At 5I!!
I have made a nice profit on MTL and am wondering if I should just take the money and run.....What are your thoughts on its near future and long term growth?
Cheers,
Tamara
I have made a nice profit on MTL and am wondering if I should just take the money and run.....What are your thoughts on its near future and long term growth?
Cheers,
Tamara
5i Research Answer:
MTL has recovered well from its precipitous drop in 2020, it pays a nice yield of 4.6%, has historically grown its sales nicely, uses its free cash flow to repurchase shares, and has strong margins, but its debt levels are somewhat high. Sales and earnings are expected to decline this year, although its recent earnings were well-received by the market and we feel that it is fairly priced. We would be comfortable taking profits here but also feel that it has room to run if it can break above ~$16.