I have received a buy rec from a broker on this stock SDF, and wondering your thoughts as a long term buy ?
A: Thanks for the question on Steadfast (SDF).
Certainly a stock that has done pretty well, and delivered on guidance. Trading near 52 week highs. According to FN Arena, consensus broker price target of $3.27 (range $2.90 to $3.90), about 2.5% lower than the last market price of $3.35. 1 buy, 2 neutral recommendations.
Trading on a multiple of 25.4x FY19 earnings and 23.1x FY20 earnings. Looks pretty fully priced for an insurance broker. Not for me.