Onex Corp. (ONEXF.PK) is one investment not to be passed up, says RBC Capital Markets analyst Nick Morton.
"Onex appears inexpensive and we like what we see," said Nick Morton in a note to clients.
At a time where few have equity and virtually none have credit, Onex is well positioned with approximately C$700-million in cash and $3.6-billion of available third-party capital.
Trading at roughly C$19, the analyst said investors are getting C$6 of public companies at current market quotes, C$7 of cash and equivalents and paying just C$6 for C$15 worth of private companies and Onex's growing third party money management business.
He maintained his "outperform" rating and estimates Onex's current net asset value at C$29. Given its history of trading in direct relation to its "hard' asset value, Mr. Morton has a price target on the stock of C$29, down from C$30 previously.