Q: Greetings 5i Team and HNY,
I see that DCBO is rated 'B' on the Gr Model Portfolio and that recent Q&A has it as a top pick. What would need to happen for the company to be upgraded to 'B+'?
Also, DSG is rated as 'A-' on the BE Model Portfolio; is it safe to assume that you prefer DSG over DCBO or would this be conditions based?
Thank you very much.
Steve
I see that DCBO is rated 'B' on the Gr Model Portfolio and that recent Q&A has it as a top pick. What would need to happen for the company to be upgraded to 'B+'?
Also, DSG is rated as 'A-' on the BE Model Portfolio; is it safe to assume that you prefer DSG over DCBO or would this be conditions based?
Thank you very much.
Steve
5i Research Answer:
On DSG/DCBO, yes. DSG is much larger and has a longer public history of success. It has managed economic cycles well and has been a long-term value creator. We would upgrade DCBO on continued strong earnings with a focus on improved cash flow as well.