Five analysts withdrew their buy recommendation on the Goodfood stock after learning about the Montreal online grocer’s year-end results mid-last week.
George Doumet, of Scotia, agrees he should have been more cautious before the results were released due to the significant easing of health restrictions and agrees that the stock may now look attractive after its fall. However, he decides not to suggest buying the stock anymore because the level of risk associated with the stock has “greatly” increased.
At Canaccord, Luke Hannan no longer offers to buy the share since Wednesday. He says the magnitude of the slowdown in demand took him by surprise and the numbers presented are pushing him to the sidelines. He describes the outlook as “daunting” and warns that 2022 could be a “difficult” year for Marlet Goodfood.
Raymond James, Acumen Capital and Eight Capital are the other firms that have decided to no longer recommend the purchase. They are now only three analysts out of nine to propose the purchase of the stock.
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The hedge fund (hedge fund) Montrealer BT Global Growth supports short selling the securities of companies in the technology sector deemed “grossly overvalued”. Why be surprised, for example, to see Lightspeed lose 33% in one session at the beginning of the month after publishing your results? Paul Beattie asks in his monthly financial letter released last week. “The rating was too high. Very good company with a ridiculous valuation at 40 times its revenue. The result is a spectacular reassessment ”, underlines the boss of BT Global Growth.
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Senior management of Lightspeed will make a series of presentations Tuesday morning as part of the very first day for analysts and investors organized by the Montreal company specializing in cloud commerce solutions. The event will take place in New York City from 8 a.m. to noon. Attendees will get updates on products, markets, and executives’ plans.
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A new analyst on Tuesday launched a follow-up of the Canadian National without however recommending the purchase of the shares of the Montreal rail carrier. Oliver Holmes of Atlantic Equities said in his initial report that CN has underperformed in recent years, but has an opportunity to improve its financial performance with a new strategic plan. “This plan is not without execution risk, however, especially as navigating the transition with a new CEO. ”
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Scotia analyst Michael Doumet no longer suggests GDI. On Monday, he withdrew his recommendation to buy the title of the Montreal company specializing in building maintenance. “The expansion of margins from janitorial activities has had its day. I expect these high margins to gradually compress over the next few years. This risk will lead to a contraction of the valuation multiple, he said. He fears in particular the rising cost of labor in a context of shortages and believes that some customers could turn to less expensive service providers.
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Lassonde at the beginning of the week lost the recommendation of Frédéric Tremblay, at Desjardins Securities. The analyst on Monday withdrew his purchase suggestion on the title of the Rougemont juice producer. “While demand remains healthy, sales and margins are affected by the labor shortage, particularly in the United States. A difficult context also characterized by the high cost of inputs should persist for a few quarters despite efforts to adjust prices. ”
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Quebec titles from Richelieu Hardware, Couche-Tard Food, Metro, Uni-Select and Gildan all hit a 52-week high in Toronto this week. In contrast, those of Quebecor, Lassonde, mdf trade and Goodfood Market just hit a low in the last 52 weeks.
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A three-day week is starting for many Americans. The New York Stock Exchange and NASDAQ will be closed Thursday and only open for half a day on Friday due to the Thanksgiving break.