We continue to like PRL. We cannot direct answers personally, but we always suggest trimming if needed to manage one's position and overall risk exposure. Despite its gains, it is priced 'OK' at 15X earnings. Note the sector tends to have lower P/E multiples, and it is higher due to its growth rate. EPS is expected to be $1.53 this year, from $0.76 last year, to $2.34 in 2025. These are consensus estimates. We would expect them to rise with the acquisition closing. Only one analyst (Scotiabank) has published since the deal was announced. PRL notes the acquisition will be 'immediately accretive' but it has not quantified this. We would consider 15 to 16X a 'fair' multiple, so PRL needs to execute to see its shares go higher. But, it has beaten estimates in seven straight quarters, and tends to be conservative in guidance. Lower rates could improve earnings, as could another acquisition. It grew revenue by 49% last quarter and also has a good dividend increase record, two other factors that could support a higher valuation on continuation.
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