Q: If you had to choose between Topicus and Lumine for a 5 year investment which one would you pick and why? Also, what are good entry prices for both?
Thanks
Thanks
5i Research Answer:
LMN is a $1.3B company and TOI is much larger at $8.4B. TOI checks a lot of boxes; it has a good revenue growth profile, good margins, strong free cash flows, and a healthy balance sheet. LMN also demonstrates good qualities - good revenue growth (albeit limited history), decent free cash flows, and a growing balance sheet.
Due to LMN's limited history and its smaller size relative to TOI, we would prefer TOI today. We feel a good entry price for LMN is ~$16, and for TOI ~$101.