Q: Hi 5i Team,
These two companies have pursued similar strategies it seems over the years and both have been badly beaten up. Is there a preference among the two of them and why?
Thanks!
Derek
These two companies have pursued similar strategies it seems over the years and both have been badly beaten up. Is there a preference among the two of them and why?
Thanks!
Derek
5i Research Answer:
We think both are decent companies/stocks. Both have been hit with softare/AI concerns, but ROP still has c lose to $2B in 'product' revenue. CSU is more expensive but has higher margins. Both are still expected to grow. We would prefer CSU for growth potential and a recovery from its giant drawdown, which is nearly all based only on sentiment and not fundamentals. But, both are falling knives and a bottom is hard to call in such an environment.