Q: Hello Team,
A lot of power producing companies, including CPX, had a great run since the advent of AI and the need to power data centers sprouting everywhere. With the news about Deep Seek a lot of them took a shaving yesterday. Do you think CPX can recover? Thank you as always for your valuable insight.
Adel
A lot of power producing companies, including CPX, had a great run since the advent of AI and the need to power data centers sprouting everywhere. With the news about Deep Seek a lot of them took a shaving yesterday. Do you think CPX can recover? Thank you as always for your valuable insight.
Adel
5i Research Answer:
We think CPX is buyable on the dip at only 12.5X earnings. It does not have the high valuation of the US players which might make it less vulnerable. The dividend is attractive, with a low payout ratio and a good history of increases.