Q: Hi, Boyd Group stock has been declining after its recent earnings. The company is one of the favourites with 5i. Do you believe that the issues highlighted by the management in the last earnings report are transitory and company's long term growth profile is intact ? If so, would you start a new position at current levels and at what price stock would be Extremely Attractive ? Thank You
5i Research Answer:
Based on BYD's very very strong operating history and long term performance, we have no reason not to believe management. We think the long term growth story does remain intact. Very strong earnings growth is still very much expected into 2025 (based on consensus estimates). In a market correction, we think $215 would be very attractive. We doubt it gets there however without a big market setback. We would be fine with a partial position at current levels with a view to fill into any further decline.