Q: Could I get your view of Chorus Aviation.
5i Research Answer:
CHR has been moving nicely recently, it pays a yield of 1.8%, but forward sales and earnings estimates are expected to be quite modest, and analyst trends have been mostly declining. Margins have come under pressure, but it trades at a cheap valuation of 12X forward earnings. Recent results were strong and management is expecting a solid year for the company. We like the momentum, and we think it can perform well given its recent results, but it is a small-cap name and its long-term trend has mostly been down. We think it looks OK if management can execute on its growth expectations for the year.