Q: Why the rather large decline of CPX today? Is it a good opportunity to buy?
5i Research Answer:
The energy/utility sector is getting hit on AI news out of China, with DeepSeek developments likely to lower the demand for power from the AI sector. Anything AI-related is getting hit quite hard on Monday. We think CPX is buyable on the dip at only 13X earnings. It does not have the high valuation of the US players which might therefore be more vulnerable.