The wise investor |  Richelieu is no longer unanimous

The wise investor | Richelieu is no longer unanimous

Every Sunday we highlight financial and stock market news that may be useful to the investor, but may have gone unnoticed.

Posted yesterday at 8:00 am

richard dufour

richard dufour

TD withdrew its suggestion to buy Richelieu Hardware on Friday.

After reading the quarterly performance above expectations published the day before by the Montreal company, analyst Meaghen Annett judges that the appreciation of the stock for a month means that the current valuation no longer warrants a buy recommendation.

He points out that his opinion could change in the event of a fall in the share and stresses that as long as the macro context does not change, the leadership position of richelieu and the strength of its balance sheet may not be appreciated at fair value and therefore limit the expansion of the valuation multiple.

The other two analysts following Richelieu are still offering to buy.

good food market it lost its recommendation from National Bank Financial earlier this week. Ryan Li withdraws the purchase suggestion from him, arguing that the inflationary context and economic uncertainty could affect the consumer and therefore the execution of the Montreal online grocer’s strategy. He said the share price will remain under pressure until Goodfood clearly shows sales growth (including on-demand delivery) and better margins.

Only one in six analysts still suggests buying the stock.

Scotia no longer recommends buying shares of Saputo Y Underground. Analyst George Doumet now covers both of these titles, taking over from his colleague Patricia Baker, who is retiring. In the case of Metro, George Doumet points out that the market recognizes the consistency of execution in the Montreal shopkeeper and that the valuation is fair. For Saputo, he too believes that the level of risk to be taken versus potential reward is currently in balance.

The title of the Montreal manufacturer of envelopes and packaging products. supremex has just been added to the list of the best investment ideas of the firm iA Capital Markets, while the title of GDIanother Montreal company is removed from the list. Speed ​​of light it is the only other Quebec company on this list of fifteen titles.

The Supremex stock has performed well since the beginning of the year, but its valuation multiple remains very low, it is underlined. “Supremex has managed to transform its activities in a declining sector (sachets) into a growth engine while remaining active on the acquisition side of the packaging sector. »

waterfalls was added midweek to RBC’s list of top Canadian small-cap investment ideas. This list of twenty titles already included two other Quebec companies: Transcontinental Y OpSense. RBC believes Cascades will benefit from a headwind from the strong US dollar and holiday spending, which should boost demand for the company’s Kingsey Falls packaging solutions.

Unsurprisingly, given the current economic environment, it appears that demand for ready-to-cook meals is falling, which doesn’t bode well for the online grocery store. Market good food. A Stifel/GMP survey this week revealed that 18% of respondents who sign up for a ready-to-cook meal service plan will cancel their subscription in the next 12 months.

a leader of GDI It has just acquired for just over $100,000 the shares of the Montreal company specializing in building maintenance. CFO Stephane Lavigne bought 2,500 shares on September 27. Her colleague in charge of building services, Jocelyn Trottier, for her part bought a block of 700 shares on September 30.

The Quebec titles of Québec, transaction, good food, Lassonde, Logistec, Dorel, Bank Laurentian, Heroux-Devtek, vision, FALLS OFF, Cogeco Communications, Lion, senvest Capital Y watch all hit a new 52-week low on the Toronto Stock Exchange this week. On the contrary, dollarama hit another high this week.

The Toronto Stock Exchange will be closed on Monday for Canada’s Thanksgiving holiday. US markets will be open.

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