Posted at 8:00 a.m.
TD withdrew its buy suggestion on 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 action for a month means that the current valuation no longer justifies a recommendation. of purchase.
She notes that her opinion could change in the event of a decline in the stock and underlines that as long as the macro context does not change, the leading position of Richelieu and the strength of its balance sheet may not be appreciated at their fair value and therefore limit the expansion of the valuation multiple.
The two other analysts who follow Richelieu still offer the purchase.
Goodfood Market lost the recommendation of National Bank Financial earlier this week. Ryan Li withdraws his purchase suggestion, 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 stock price will remain under pressure until Goodfood clearly shows sales growth (including on-demand delivery) and improved margins.
Only one out of six analysts is still suggesting buying the stock.
Scotia no longer recommends buying shares of Saputo and Subway. Analyst George Doumet now covers these two 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 constancy of execution at the Montreal grocer and that the evaluation is fair. For Saputo, he also 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. Lightspeed is the only other Quebec company on this list of fifteen titles.
The title of Supremex 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 (envelopes) into a growth engine while remaining active on the acquisition side of the packaging sector. »
Waterfalls was added mid-week to RBC’s list of top Canadian small cap investment ideas. This list of twenty titles already included two other Quebec companies: Transcontinental and OpSense. RBC believes that Cascades is set to benefit from a headwind that will come from the strength of the US dollar and holiday season spending, which should fuel demand for the Kingsey Falls company’s packaging solutions.
Unsurprisingly given the current economic environment, it seems that demand for ready-to-cook meals is falling, which doesn’t bode well for the online grocer. Market good food. A survey by Stifel/GMP revealed this week that 18% of respondents who subscribe to a ready-to-cook meal service plan to cancel their subscription in the next 12 months.
A leader of GDI has just purchased for just over $100,000 of shares in the Montreal company specializing in building maintenance. Chief Financial Officer Stephane Lavigne bought 2,500 shares on Sept. 27. His colleague responsible for building services, Jocelyn Trottier, for his part bought a block of 700 shares on September 30.
The Quebec titles of Quebecor, Transat, good food, Lassonde, Logistec, Dorel, Bank Laurentian, Heroux-Devtek, Havision, CAE, Cogeco Communications, Lion, Senvest Capital and Velan all reached a new 52-week low on the Toronto Stock Exchange this week. At the opposite, Dollarama hit another high this week.
The Toronto Stock Exchange will remain closed on Monday to mark the Thanksgiving holiday in Canada. US markets will be open.