Q: I‘m a happy shareholder of BBD since 2022. I took profit from time to time including early May’24.
I don’t understand the rise from $63 to $91 since earnings release (up 16% on Wednesday).
BBD got many upgrades from analysts around $100, but this stock is not cheap anymore.
Close to a MEME stock? Or any good news this week? Thanks for your services and patience.
I don’t understand the rise from $63 to $91 since earnings release (up 16% on Wednesday).
BBD got many upgrades from analysts around $100, but this stock is not cheap anymore.
Close to a MEME stock? Or any good news this week? Thanks for your services and patience.
5i Research Answer:
On Wednesday, Bank of America raised BBD.B to 'BUY' from 'Underperform'. It notes it may participate in more M&A and the turnaround has been executed well. The company also sold new bonds which were received well. Other analysts noted the growing aircraft installed base bodes well for future the after-market parts business. With its 72% gain this year it has risen to 15X earnings. Good earnings growth is expected next year. BUT..the balance sheet is still highly leveraged, with debt at more than 8X last year's cash flow. But it did beat earnings estimates last quarter even on lower deliveries.