BRP lost three supports on Bay Street earlier this week.
Analysts at Scotiabank, CIBC and Desjardins Securities have all withdrawn their buy recommendations on the stock of the Valcourt-based recreational vehicle manufacturer. These decisions follow the reduction in forecasts announced by BRP September 6. There are now 9 out of 19 analysts suggesting a purchase.
“Future rate cuts will not be enough to catalyze a recovery in consumer demand, particularly for high-priced discretionary products,” said Jonathan Goldman of Scotia.
At CIBC, Mark Petrie speaks of greater uncertainty about the pace of the recovery. “The stock has limited growth potential until macroeconomic conditions improve.”
Desjardins’ Benoit Poirier, for his part, maintains that BRP will continue to gain market share from competitors that are not investing enough and to generate additional revenues thanks to new products. However, there is a lack of catalysts in the short term, he adds, and the stock could, in his opinion, come under further downward pressure.
The big boss of Coveo has just taken advantage of the decline in the stock of the Quebec company specializing in artificial intelligence applied to e-commerce to accumulate shares. Louis Têtu bought a little over $100,000 worth of shares on Tuesday. He bought a total of 18,000 shares at prices ranging from $5.65 to $5.76.
Three analysts changed their recommendations this week on Dollarama after the Montreal retailer reported a reassuring financial performance. TD and CFRA Research now recommend buying the stock while Wells Fargo withdrew its buy recommendation. “Management is maintaining its guidance for the year unchanged, reflecting a degree of conservatism ahead of the important Halloween period,” said CFRA’s Arun Sundaram.
TD’s Brian Morrison is increasingly confident that the Canadian business can deliver on its goals, calling the growth prospects of Latin American partner Dollarcity exceptional. He sees the likelihood of success in Mexico as increasing, as the model is now operating successfully in five different countries. Eight out of 12 analysts now recommend buying.
The action of Knight Therapeutics gained 7% on Tuesday after a Montreal portfolio manager praised the Montreal pharmaceutical company on the show Market Call on Bloomberg’s BNN financial channel. Andrey Omelchak of LionGuard Capital touted Knight as one of his top investment ideas, calling Knight a “hidden gem” thanks to its strong cash flow generation, “huge” net cash position and the leadership of founder Jonathan Goodman. The stock remains extremely undervalued in his view, and he wouldn’t be surprised to see a management buyout (management buyout) if the stock peaks at its current level on the stock market.
Savaria Savaria Corp. announced this week a 4% increase in its dividend. This is the first dividend increase in two years for the Laval-based company specializing in accessibility for people with reduced mobility. The stock is up nearly 40% this year. Savaria has been part of the S&P/TSX Canadian Dividend Aristocrats Index for four years.
THE CN lowered its forecasts again this week. The decision was motivated in part by the impact of the recent work stoppage on international intermodal traffic, the Alberta wildfires, and a weaker-than-expected economic context (forest products and metals). This update undoubtedly represents a necessary reset of expectations, although it is difficult to identify a positive catalyst in the near term for the stock, commented TD analyst Cherilyn Radbourne midweek.
Bomber And Dynacor are the only two Quebec stocks featured this year in the annual TSX30 ranking published Tuesday by the Toronto Stock Exchange. This is a list of the 30 best-performing stocks over a three-year period. Bombardier comes in 13e in the country with a yield of 200%. Bombardier had also taken the 13e ranking last year with a three-year return of 522%. Dynacor Group is a Montreal-based gold ore processing company with a three-year return of 136%. This is Dynacor’s first appearance in the ranking.
Quebec titles of Cogeco Communications, Quebecor, National Bank, Metro, Haivision, Transcontinental, WSP, Power Corporation, 5N Plus, Héroux-Devtek And Savaria all hit 52-week highs on the Toronto Stock Exchange this week.
On the other hand, those of Deckchair And MTY fell again this week to a 52-week low.