Posted at 7:00 a.m.
Laval-based pharmaceutical company Bausch Health lost three buy recommendations after an unfavorable court ruling on Thursday surrounding patents.
RBC, JP Morgan and Truist Securities immediately decided not to suggest buying the stock of the company formerly called Valeant after learning of the news.
RBC now expects to see a generic competitor to Xifaxan appear on the market early in 2025. Truist points out that Xifaxan is the most important product of Bausch Health and the most likely to generate growth within the company, and that we now have to worry more about the level of debt at Bausch.
The title of Resolute Forest Products is the big Quebec winner for the month of July on the Toronto Stock Exchange with a gain of 59%. IntelGenx (+49%), 5N More (+30%), Uni-Select (+29%), TFI (+24%), BRP (+23%), Taiga (+23%) and Dialogue (+18%) also had a good month.
Among the losers, Bausch Health (-45%), mdf trade (-31%) and Goodfood Market (-23%) went through a difficult month.
The American fund BVF Partners has bought several blocks of shares in the Montreal biotech Repair Therapeutics in June so as to begin the month of July with a 19.8% stake in the company specializing in precision oncology. This participation stood at 14% at the beginning of February.
A document filed this month with the authorities indicates that BVF held 8.3 million shares of Repare as of 1er July. The institutional investor from San Francisco is the largest shareholder in Repare and the only one to hold more than 10% of the shares.
The arrival of August marks the holding of another edition of Club BRP. The event will officially begin next Sunday evening (August 7). It will take place in Salt Lake City, Utah, and will span three days. The direction of BRP will take the opportunity to unveil new products for each of its brands. This is an opportunity to specify the growth strategy for these products related to motorized travel on water, on asphalt and on land.
Sabahat Khan has provided official coverage of the activities ofUni-Select on behalf of RBC. He is the only one of seven analysts not to recommend buying the stock of the Boucherville auto parts supplier. He believes that the new management team has been able to make significant progress in a short time and position the company for continued growth. According to him, the recent progress and favorable outlook are however adequately reflected in the current assessment.
Recessions are part of the self-purification process of a healthy economy, Montreal asset manager Claret points out in its quarterly letter published this month.
“When interest rates stay low for too long, any project or start-up company looks promising. As the cost of capital rises with rising interest rates, many of these zombie companies will run out of capital, lay off workers, restructure or go bankrupt. A slowdown or recession will ensue, unemployment will rise and inflation will fall. And the cycle will start again. »
The process of a market dip usually involves some kind of credit event, i.e. the loss of a lot of money due to a bold move or strategy, adds- your. “It also assumes that the use of too much leverage combined with a lack of liquidity suddenly turns a seemingly good investment into a toxic investment. »
The most sensible strategy in today’s market environment, says Claret, is to stay invested. “It’s not the timing of the market that counts, it’s the time spent in the market. »
The Montreal asset manager Fiera Capital lost the buy recommendation from Desjardins Securities in the middle of the week. Analyst Gary Ho’s decision is essentially a question of valuation. There is now only one analyst (out of seven) suggesting the buy.
The Quebec titles of Therapeutic Knight, Uni-Select, Rogers Sugar and Boralex hit a 52-week high on the Toronto Stock Exchange this week.
At the opposite, VAT, Neptune, mdf trade, Yellow Pages, Guru, Hexo and Goodfood Market all reached a 52-week low this week.
The Toronto Stock Exchange will remain closed on Monday to mark the civic holiday, a public holiday in most Canadian provinces, but not in Quebec, every first Monday of August.