TRP P/E at 19X compares with its 10-year range of 12 to 19x so it is certainly on the high end of the range. EPS growth as noted is not going to be spectacular. The stock is trading for its yield of 4.74% and its safety going into a possible recession. Business is historically stable and the tax-adjusted yield is certainly attractive vs fixed-income alternatives. We are comfortable with it, but more as an income security and would not expect big gains here. It's up 33% in the past year and we doubt that rate is sustainable, certainly. The debt is nothing new of course, and common for the sector. Lower rates will help here. It has 13 BUYS, 10 HOLDS and 3 SELLS. Avg. target price $73.37. We would consider it 'buyable' slightly lower. Our main comment here references the 'riskier' note in the question. IF we head into a period of weakness, we would prefer to own TRP over dozens of other securities. In fact, in a recession, investors may flock to it even more as a safe harbour security with an attractive dividend.
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