Many analysts were already recommending Lightspeed stock ahead of Thursday’s 28% drop. There are now more of them.
Paul Steep, of Scotia, has suggested since Friday the purchase of the title of the Montreal provider of cloud solutions for merchants. “There is a short-term opportunity as management plans to continue to generate growth,” he said. The risk-return ratio seems favorable the day after the stock’s fall. He warns, however, that the stock may remain highly volatile for some time.
In a note also released Friday, TD’s Daniel Chan claims the title is oversold and listed Lightspeed on TD’s list of the best investing ideas. “The stock is trading at a lower multiple than the market gave it before the pandemic, as the pandemic has accelerated the growth of e-commerce,” he writes. Providers of e-commerce solutions, like Lightspeed, are expected to benefit from a higher valuation multiple than they were before the pandemic.
They are now 12 analysts out of 14 to recommend the purchase of the title of Lightspeed.
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TD’s Brian Morrison retired the title on Friday Gildan of TD’s list of best investing ideas the day after the Montreal t-shirt and sock maker reported results that far exceeded expectations. Gildan’s stock gained 7% on Thursday and the stock’s appreciation no longer justifies keeping Gildan on the “Action List Buy”, he said.
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Bank of America on Friday began official monitoring of the activities of Nuvei by recommending the purchase of the title of the Montreal payment solutions provider. Analyst Jason Kupferberg sets his initial 12-month target at US $ 145. They are now 12 analysts out of 14 to propose the purchase of this title.
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The lawsuit brought by Quebecor versus Rogers concerning the development of their common wireless network in Quebec and the Ottawa region sheds new light on the two companies’ decision to develop independent parallel networks. The lawsuit makes analyst Jérôme Dubreuil of Desjardins fear that higher spending in wireless since the start of the year will continue in the coming quarters. His colleague Jeff Fan of Scotia, for his part, believes that the lawsuit is a way to bring Rogers back to the negotiating table.
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Impressed by the execution of the turnaround plan of Bomber since the start of the pandemic, Benoit Poirier, of Desjardins Securities, on Friday reduced his recommendation to “buy” on the company’s stock. “I applaud management’s disciplined approach to the pace of production, which should help improve margins. The risk / reward ratio is attractive enough to recommend buying. ”
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CIBC withdrew its recommendation to buy the title of Gatineau cannabis producer earlier this week Hexo. “The fears surrounding the balance sheet are growing and the inability of management to respond to these concerns raises concerns about a new issue of shares,” said John Zamparo. “I think the title will recover eventually, but a major pullback is possible before that. It is best to wait until you have a better idea of what will happen to the balance sheet before becoming more constructive. ”
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Montreal’s online grocer Goodfood Market Express on-demand (1 hour) delivery to Toronto began Monday. Analyst Martin Landry, of Stifel GMP, is uncertain in how many markets this service may be viable in, but nonetheless welcomes the initiative that is helping to break into the $ 20 billion market. nationwide online grocery store. “Given the size of this market, Goodfood does not need to capture a large market share to significantly increase revenue. The action is attractive since the expansion of activities in the grocery sector remains little to be expected. ”
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Quebec titles from CAE, Gildan, iA Financial Group, Cominar and Bank National hit a 52-week high in Toronto this week. In contrast, those of mdf trade, Dialogue, Saputo, Neptune and Hexo just hit a low in the last 52 weeks.
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The Montreal telemedicine company Dialogue will release its quarterly results on Tuesday, and TD’s David Kwan expects the “exceptional” growth to continue. He believes that the consensus continues to discount investments made to generate growth. “The title seems (very) oversold to me,” he wrote in a note published mid-week. The decline in telemedicine titles is linked to concerns surrounding the post-pandemic outlook and these fears are exaggerated, he said.