Q: Like your opinion on NPI - realize that most alternative power companies are down & high interest rates affect them. Am a long term holder of NPI. What is your view for the next 1-3years - should I sell & look for a lower entry point or hold on?
Also, what are your forecasts for the Big 5 Cdn. Banks?
Thanks, Ross Siemms
Also, what are your forecasts for the Big 5 Cdn. Banks?
Thanks, Ross Siemms
5i Research Answer:
NPI is trading at a 20.6x Forward P/E and yielding 4.9%. It is a company that has executed well in the past and some wind projects should be coming on line soon, contributing to growth. After the declines here, we would prefer to hold at this stage.
As for Big 5 Canadian Banks, we think there are some gives and takes across the group with a potentially slowing Canadian economy and higher interest margins but the group is trading at reasonable valuations and not a space we would be particularly concerned about.