Metro could buy the Rexall pharmacy chain (407 stores nationwide) in the short or medium term, according to analyst Vishal Shreedhar of National Bank Financial.
In a note published at the beginning of the week, this expert maintains that an acquisition of the channel owned by McKesson would allow the Montreal grocer to diversify its presence in Quebec and take advantage of the growth of Jean Coutu’s activities.
The analyst recalls that the management of Metro had indicated in the spring, during its investor day, that the company was actively seeking favorable opportunities in the pharmacy sector.
Two members of the board of directors of TFI have just purchased nearly half a million dollars worth of shares in the Montreal trucking company. Sébastien Martel purchased a block of 2,000 shares on Tuesday at a unit price of $152.66. He is Chief Financial Officer of BRP and joined the TFI board this summer. John Pratt, for his part, purchased a block of 930 shares on October 27. He joined the board last fall. In both cases, these are their first purchases of TFI shares on the market.
Portfolio manager Stephen Takacsy of the Montreal firm Gestion Lester believes that the stock market currently offers some of the best valuations seen since the 2008-2009 financial crisis.
“Canadian stocks are very cheap and undervalued. They trade at a price-to-earnings ratio of only about 13x based on forward earnings, well below the rest of the developed world, and in US dollars they are roughly where they were 15 years ago , a drop of around 50%. We believe that Canada is ready for a strong rebound,” he underlines in his quarterly letter published at the end of October.
Strategist Sébastien Mc Mahon, from the firm iA Global Asset Management, affirms in his monthly commentary published Friday that macroeconomic signals and the economy do not encourage risk-taking, but that valuations and sentiment (enthusiasm recent excess of individual investors now largely gone) argue in favor of a less defensive positioning outside the major American stock indices.
While the action ofAir Canada trading at a level seen at the worst of the pandemic, the Montreal air carrier attracted further support this week. The Veritas firm now recommends buying the stock, which means that the title is almost unanimous on Bay Street. There are now 14 analysts out of 15 to suggest buying. While Air Canada presented an interesting quarterly performance on Monday, Konark Gupta of Scotia believes that the increase in spending projections for 2024 to 2027 adds to existing concerns (i.e. the risk linked to health of consumers following rate increases, competition, the contract to be signed with pilots and the price of fuel). Like Air Canada’s stock, the main airline index (XAL) is down 40% since the start of July, reflecting similar concern for the entire sector.
Wells Fargo launched official coverage of its activities earlier this week. Lightspeed without however recommending the purchase of the title of the Montreal provider of technological solutions for merchants. Analyst Andrew Bauch sets his target over a 12-month horizon at $14. Lightspeed’s stock is currently worth $20. “Lightspeed is struggling to generate investor enthusiasm due to a shift in strategic direction, inconsistent results and growing competitive issues. I expect skepticism to remain,” he said in his initial report released Monday.
National Bank Financial no longer suggests abandoning the title of VAT. In a note published Friday, analyst Adam Shine said he was awaiting more details surrounding restructuring costs and expected savings related to the reorganization announced Thursday. However, he considers that restructuring is necessary given the challenges TVA faces.
A leader ofAir Canada purchased nearly $90,000 worth of shares of the Montreal air carrier in the middle of the week. The vice-president of communications, Christophe Hennebelle, purchased 5,275 shares on Wednesday at a unit price of $16.55.
Quebec titles of Dollarama, Couche-Tard, Stella-Jones, OpSens And H2O Innovation all hit a 52-week high this week on the Toronto Stock Exchange.
On the other hand, those of Lion, Lightspeed, VAT, Alithya, GDI, Savaria, Innergex, Cogeco Communications, Senvest Capital And PyroGenesis slipped this week to a 52-week low.