What are you're views on CS,s latest quarter? Seems like the tariffs uncertainties are keeping a lid on their stock price! If we are heading into a recession would it be best to sell now and revisit at the end of the recession ,if their is one?Also their debt ratio seems elevated.Looking for a two to three year hold.
Many thanks,
Jean
A sell and revisit would require both a correct call on not only the timing and duration and extent of a recession, but also a call on sentiment towards copper. It is a pretty hard exercise to navigate correctly. EPS of 1c did miss estimates of 3.2c. Revenue of $533M beat estimates of $503M. EBITDA of $179.9M beat estimates by 2.8%. Net debt is about 2X cash flow currently. For a cyclical company with some leverage, its valuation of 19X earnings is not hugely attractive considering economic uncertainty. But, based on consensus, EPS is expected to more than double in 2026. So, potential remains high here. We would be OK holding, but at the same time we would be OK with a tax loss/rebuy strategy. With weak momentum and the noted concerns, we doubt it does a whole lot in the next 3 to 6 months. Copper is highly sensitive to the economy, and the world slowed in Q1 even before the real impact of tariffs.