Q: Hi,
Propel has a lot to like. Great growth, consistent dividend raises, and a recent expansion into the UK market. Is there any reason why the share price has come off so much in the last little while? It's down 30-40% from highs a couple months ago, which seems overdone to me. Is there any risk to their business with regards to tariffs or other trade related action from the man in the white house? I know earnings are expected this week, can you share the consensus estimate please? Thanks.
Propel has a lot to like. Great growth, consistent dividend raises, and a recent expansion into the UK market. Is there any reason why the share price has come off so much in the last little while? It's down 30-40% from highs a couple months ago, which seems overdone to me. Is there any risk to their business with regards to tariffs or other trade related action from the man in the white house? I know earnings are expected this week, can you share the consensus estimate please? Thanks.
5i Research Answer:
Analysts expect $128.7 mln in revenue and $0.44 in EPS. We might wait until earnings to do anything here. Regarding the selloff, momentum names in general have been taking a hit and there is likely some added concerns over recession risks and their impact on PRL's business but after these declines, we think a lot of bad news is getting priced in at this point.