Q: Please...may we have your analysis of BBD.B ? Going forward, what would be a good entry point?
Grazzia
Grazzia
5i Research Answer:
BBD.B, after its big run, is now 19X earnings. Debt is still a risk, at 10X cash flow. But earnings growth looks good, and the company has newfound momentum, getting big contracts and target upgrades from brokers. Historically, it has been a horrible stock (25 year return negative 68%), but it does look better than usual now. Estimates call for at least 25% EPS growth next year. We think $142 would be a better buy price.