Q: Thoughts on the quarter? Where does this name sit in ranking of your top Canadian conviction names for a 10 year hold?
5i Research Answer:
BN has been consistently near the top of our growth favourites and we consider it a solid 'buy and forget' type of stock. EPS of 88c missed estimates of 90c; revenue of $18.08B beat estimates of $10.13B. Net EPS did fall year over year. A 3 for 2 stock split is planned for October. Deployable capital is a record $177B. Asset management had a 16% increase in fee-related earnings. Distributable earnings rose 13% year over year. BN sold $55B in assets. All-in, as usual, there was lots to digest. But the underlying trend of growth in cash flow continues strongly, and we remain fully comfortable here.