D & D Market Selloff Overdone Dye & Durham's 4Q Was In-Line, Market Selloff Overdone -- Market Talk
Monday, September 18, 2023, 12:32 PM ET
1232 ET - Dye & Durham's post-F4Q stock decline was overblown, according to a report by Scotiabank's Kevin Krishnaratne. He notes that 4Q results were largely in-line with expectations, but the market didn't see it that way. Krishnaratne chalks-up the 25% decline since Wednesday to investor concerns over the company's high level of leverage, "while there may also have been expectations of a 4Q beat and positive commentary on 1Q that did not materialize." He says that the software maker should trade higher, despite the leverage, thanks to a strong margin profile, a leading position in the Canadian real estate market as well as a growing recurring revenue base. Shares are tick up 1.8% to C$15.31. (adriano.marchese@wsj.com)