Q: Saw BDI as a top pick on Wednesday. What do you think of it? It has had quite a run. Is it too expensive?
5i Research Answer:
We think it still looks good, with good earnings growth expected, backlog looking good and revenue 25% ahead of estimates last quarter. It is not cheap at 23x earnings but growth is estimated to be 40%+ going into 2027. The balance sheet has a bit of leverage. We would be OK owning some, but maybe a half position for now only.