Q: Txs for this great performer.Please provlde a short summary and reasons for its recent huge rally,Still legs for more upside and time to trim or sell after huge profit ? Txs for u usual great services and views.
5i Research Answer:
We would keep position size in mind and trim accordingly but we would still be comfortable holding. The stock has moved on strong results (ahead of estimates), new broker coverage (Paradigm) and other broker target price upgrades. The electrical distribution side of the AI has captured investor attention, and this is helping both fundamentals and sentiment and valuation. The sector spending levels remain high and forecasts are likely secure now for two years. HPS is also bigger now and more large funds can look at it. It is now longer cheap at 37x earnings but still has many good qualities. EPS should nearly double from 2025 to next year's estimates.