Q: Do you consider BIPC a BUY, SELL, or HOLD at current level and why?
I am down 35% on the stock and wondering what to do.
Thanks
I am down 35% on the stock and wondering what to do.
Thanks
5i Research Answer:
BIP is set to grow earnings this year, and see about a 10% growth rate in 2024. The stock is not risk-free, but the fundamentals have no dropped like the stock has. The stock has been hit with rising interest rates and economic fears, which have impacted nearly all income stocks. But BIP still generates substantial cash flow, and the dividend payout ratio is below 50%. We would view it more as a buy for income than a sell or hold. The stock should be able to do much better when interest rates peak/decline, but we cannot time this. But we would certainly see it as one of the better income stocks in Canada right now.