Q: Can you please give a detailed outlook for Cascades(CAS) and Superior Plus (SPB) after their earnings reports? Are they buys, sells or holds at this point? Thank you.
5i Research Answer:
CAS delivered a decent beat and received many analyst upgrades. Looking forward, with a decent sales growth expectation, the focus on margin is going to be the driving catalyst. It does not have a history of great revenue or profit growth, and we do not think one good quarter overrides that. The dividend yield of 3.8% is attractive, but we would consider it a hold at this point.
SPB reported an overall miss but expects Certarus' performance to bump up pro forma 2023 guidance. We would still consider it a decent stock for income, and, likely, a takeover target one day. There is not huge growth but cash flow is nice and stable.