Q: Hi
It seems that 5I's support of TVE has waned considerably. RBC has defined their forecasts as "underwhelming". With the continuous under performance over the last few quarters, are you still recommending it? I believe it will take a few years for me to get back to the price I paid for it.
Carl
It seems that 5I's support of TVE has waned considerably. RBC has defined their forecasts as "underwhelming". With the continuous under performance over the last few quarters, are you still recommending it? I believe it will take a few years for me to get back to the price I paid for it.
Carl
5i Research Answer:
We continue to reccomend TVE and think it has potential from current levels. Admittedly, it has been disappointing, with poor performance of late. Its valuation is very cheap at 3.6x forward earnings along with a decent EPS growth outlook in 2024 at nearly 9%. Revenues displayed growth above 50% in Q3 along with continuing to generate solid cash from operations. TVE needs to focus on improving its execution and reduce its debt load while investors will continue to experience volatility here. Valuation is such that any good news good have an amplified impact on the stock. The sector of course is not helping, either. We have some patience here but would not add into a cyclical downturn.