I came across Keysight Technologies on BNN . It was recommended as part of two BNN guest’s top picks.
Another reason it caught my interest was because I used to use their products when I worked at Blackberry to develop and test our chip set .
Jennifer Rahman recommended on her top picks.
Some points that she highlighted I found attractive:
- 50 percent of their businesses is repeat business
- 5 G deployment will require products offered from this company to test
David Fingold recommended as part of his top picks as well.
Some additional points that he highlighted I liked :
- Good way to play on the defense sector
For new companies I look at investing into, I make it a practice to understand what kind of rating their debt currently has. Keysight Technologies has a rating of BAA3 – which is medium grade of investment grade rating. This is a decent rating and signals a stable business. You can find explanations for different Moody’s ratings here .
I have some money sitting in my RRSP that I am going to invest in this company . At $48 target price of the street, this will give me an upside of 14.88% if it reaches that target. I am okay with that return while I look for other higher return investments.