Q: If you had to choose just one of these companies to invest in, which one would you choose today? Would you still give a B+ rating to CAE? Thank you
5i Research Answer:
CAE is probably close to seeing a rating drop; we have waited a long time for its earnings growth to kick in. We like the backlog but it needs to be converted into EPS. At current levels, we would still lean to CAE, with NTR showing negative momentum and closely tied to China economic growth, which is not so hot right now. NTR at 10X is a decent value play, but CAE 'should' perform better, in our view.