Q: Hi team,
Is there anything to note on Prl earnings after the conference call? I caught some of it and it sounded good to me. Yet the stock is falling currently 11%. I don’t see where all the negativity is coming from here and what’s not to like here.
Thanks
Is there anything to note on Prl earnings after the conference call? I caught some of it and it sounded good to me. Yet the stock is falling currently 11%. I don’t see where all the negativity is coming from here and what’s not to like here.
Thanks
5i Research Answer:
We would consider the conference call 'fine'. There was discussion on ROE expectations (lower due to more equity issued in acquisitions), the economy (business tends to do better in an uncertain environment) and credit quality (very strong). Markets are in a sell mood, and smaller companies tend to be more vulnerable. Growth was very solid last year, with four dividend hikes. Consensus calls for very good growth this year and next. With a 2.78% yield and at 7X earnings, we think investors are too worried: the fundamentals are good here.