Q: What’s your thoughts on this stock now since it’s had a big upward move in the last 2 weeks and do you know what accounts for the pop?
5i Research Answer:
DCBO expects strong earnings and sales growth in the coming years, with margin expansion expected. The company has almost no debt, expanding margins, a good cash balance, and a history of strong earnings surprises. The company reported strong earnings prior to its sustained move higher, but it also announced a partnership with Google Cloud on Generative AI. DCBO expects to leverage Google Cloud's generative AI services, alongside its own AI roadmap to commercialize innovative solutions that transform the delivery of personalize learning at scale. We feel that this pullback is logical, and we continue to be comfortable with the name as part of a long-term hold.