Q: Hello,
Would you add to CNR at these level - long term hold - or would you wait for the market to settle down? How is the current valuation vs historical? Thank you
Would you add to CNR at these level - long term hold - or would you wait for the market to settle down? How is the current valuation vs historical? Thank you
5i Research Answer:
Current valuation of 16X earnings is well below historicals of 22+X. Yield is now 2.69%. It is hard to paint a really rosy picture for the economy right now, but the valuation reflects this somewhat. We would be OK buying some as long as an investor can hold through the current business cycle and tariff uncertainty. Analysts still expect 15% growth this year, but this is likely to be trimmed we think.