Q: Good morning, which of these two stocks would have more upside potential, day about one year atvthe most regardless of anything else. I realize it's a very short time horizon and it's like comparing apples to oranges, thanks?
5i Research Answer:
PNG has likely more growth potential due to its impressive revenue growth and ability to win contracts that the company has displayed. However, this is at an extremely higher level of risk than CS being so much smaller. CS has performed well over the last year and growth will be tied to the outlook on copper which we think is favourable. Analyst forecasts predict both companies will grow revenues above 35% in 2024, however CS has the more favourable outlook beyond that. If we were picking between companies we would choose CS, however due to PNG's smaller size, the upside potential is larger.