Q: Down for a long time.
Keep or sell and replace with most promising
Canadian growth company
Keep or sell and replace with most promising
Canadian growth company
5i Research Answer:
We like BN for its business diversification, strong management team, history of returning shareholder value and profitable returns, and solid capital allocation execution. The company has been impacted by rising rates and short-term headwinds such as recessionary concerns. It is trading at a cheap valuation of 9.0X earnings and being one of the stronger Canadian names, we are quite comfortable with BN as part of a long-term hold. We would be comfortable keeping BN for an eventual turnaround in the capital markets.