Q: Good morning,
As the dust settles south of the border, how do you see these two (and related) stocks, as they're connected to EV and renewable energy. Worth purchasing today, or better to look elsewhere?
Thank you.
As the dust settles south of the border, how do you see these two (and related) stocks, as they're connected to EV and renewable energy. Worth purchasing today, or better to look elsewhere?
Thank you.
5i Research Answer:
We tend not to buy into such companies with the sole thesis of certain themes like EV or renewable energy. We think investors are better off taking into consideration other fundamental-related factors including growth rate, profitability, and valuations. That being said, we think the two trends of EV and renewables certainly could still be a long-term tailwind for companies like HPS.A and CS. Although we would not base investment decisions on the themes alone, we think both companies are trading at fairly attractive valuations that could do well from these levels.