Q: I noticed BLX:CA is oversold (RSI). What is your opinion on their current financials and prospects for the future?
Thanks
Thanks
5i Research Answer:
BLX has had weak performance over the last year and teh CFO departure has not helped sentiment. The valuation looks good at 11X EV/EBITDA and decent growth is expected this year nad next in the mid-teens. We think the main issue in our view here is that it has $4.5 bln in debt and interest costs eat away at a lot of profitability. In fairness, they are operating cash flow positive but the debt could take them some time to work their way out from.