The Savvy Investor | Support for Coveo

Every Sunday, we shine the spotlight on elements of financial and stock market news that may be useful to the investor, but which could have gone under the radar.



Richard Dufour

Richard Dufour
Press

Three of the first four analysts to launch official coverage of Coveo’s activities this week recommend buying the stock in the Quebec-based company specializing in artificial intelligence applied to e-commerce.

“It is reasonable to believe that the action of Coveo should advance more or less in line with revenue growth in a range of 25% to 30% and, with any luck, this assumption will prove to be conservative, ”argues David Hynes, of the Canaccord firm.

He believes that if the company performs as he plans, Coveo should become a household name for Canadian tech investors, which will be a good thing for the stock.

His colleagues Paul Treiber at RBC and Thanos Moschopoulos at BMO also find the stock attractive and suggest buying.

At Scotia, Paul Steep is showing a little more restraint, but nonetheless sees the title as a way to invest in an important theme, that of digital information growth and the need for relevant research results.

BRP just got a boost from scotia. Analyst George Doumet launched his official coverage of the activities of the Valcourt recreational vehicle maker on Friday by suggesting to buy the stock. He describes BRP as a “high growth machine” and considers that the stock commands a higher valuation multiple.

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The Montreal company Nuvei, specializing in electronic payment solutions, could make some interesting announcements in the short term. BMO’s James Fotheringham says management is not ruling out legal action against the short seller who recently published a negative report on Nuvei. A repurchase of shares by the company and purchases of shares by the managers are also to be monitored.

Nuvei made a stock issue of nearly half a billion dollars at a unit price of US $ 123 per share in October. To buy back these shares today at the current price is a rather attractive transaction, underlines the analyst.

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CIBC suggests dropping Hexo since Tuesday. Analyst John Zamparo expects the title of the Gatineau cannabis producer to remain under pressure for some time to come, not least due to the specter of dilution. “Another $ 200 million in shares could be issued over the next six months. “

The main risk to be feared is the announcement of a purchase offer by another producer. “It’s a possibility, but an acquirer will be reluctant until Hexo’s financial results improve. “

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Laurentian Bank Securities has unveiled a short list of its best investment suggestions for 2022. Two Quebec companies, Héroux-Devtek and WSP, are found on this list of eight titles. There were also two Quebec companies (mdf trade and SNC-Lavalin) on this list for the year that ends.

An administrator of 5N More in the middle of the week bought more than $ 160,000 in shares of the Montreal producer of technological materials. Jean-Marie Bourassa on Wednesday bought a block of 75,000 shares at a unit price of $ 2.15.

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TD on Thursday affixed a special mention to the title of Boralex. Analyst Sean Steuart places the Quebec producer of renewable energy on the “Action List Buy” mainly because he believes that the title has fallen exaggeratedly since the start of the year. “Boralex is well positioned to continue expanding into two important markets, those of France and New York,” he emphasizes.

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The fold of the title of CAE since the release of quarterly results on November 11 has created a buying opportunity, according to Desjardins Securities. Analyst Benoit Poirier has been offering since Tuesday the purchase of the shares of the Montreal manufacturer of flight simulators. “The uncertainty brought by the Omicron variant has created an attractive opportunity for long-term investors. “

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The firm Veritas has lined up behind the Bank Laurentian Monday. Nigel D’Souza “transformed” his sell suggestion into a buy recommendation after learning about the bank’s strategic plan for the next few years. At CIBC, analyst Paul Holden, for his part, withdrew his sales suggestion earlier this week mainly for a question of evaluation. However, he does not yet offer the purchase of the title.

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The Quebec titles of Dollarama, Metro, Bellus Health and Senvest all hit a 52-week high in Toronto this week.

In contrast, those of Deckchair, 5N More, Stella-Jones, Goodfood, Lion, Cogeco, Quebecor, Boralex, Innergex, Haivision, Lassonde, Lightspeed, mdf trade, Neptune, Xebec, Taiga and Hexo just hit another low in the past 52 weeks.


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