Q: Do you have a preference for one of these stocks an entry $ price and why? For a 3 to 5 year hold. Thanx
5i Research Answer:
We like both names, especially for a long-term holding, but we would give DSG the slight edge here. We like its growth profile, track record of execution, and margin profile more than GIB.A. It does trade at a higher valuation than GIB.A, but we feel this reflects its better margins and growth expectations.
We would be comfortable averaging into DSG here, or in the low to mid-$130s if we see those prices.