Bidding War Of Hudson's Bay: It's A Buy

About: Hudson's Bay Company (HBAYF)
by: Saint Fleur Investment Research
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Saint Fleur Investment Research
Short only, Growth, long-term horizon

HBC is a Canadian retail business group, which trades in the Toronto Stock Exchange since November 2012.

HBC hired a new CEO, Helena Foulkes, who worked at Goldman Sachs, and was appointed to create a financially stronger company.

With two offers at CAD 10.30 per share and CAD 11 per share, we don’t see a lot of risks.

If we use 2020 EBITDA of CAD 406 million, HBC is trading at 9.1x 2020 EBITDA, which we don’t believe is that expensive if we consider the company’s PP&E.

In our opinion, the group of shareholders will hold conversations with Catalyst and will agree on a fair price.

With two bidders, Hudson's Bay Company (OTCPK:HBAYF) is a must-follow stock at less than CAD 10.3 per share. Besides, we believe that the company did not contact many potential acquirers, which may lead