For a second month in a row, asset manager Mackenzie sold $100 million worth of BRP shares.
Mackenzie has just revealed to the authorities that it sold 874,713 shares of the manufacturer of personal watercraft and snowmobiles from Valcourt during the month of January.
Mackenzie’s interest in BRP has thus just fallen below the 10% mark, which means that the institutional investor is no longer required to declare his transactions in the security unless he makes purchases that again increase this participation to 10% or more.
Mackenzie’s stake in BRP was approaching 15% at the start of October. It fell to 10.9% at the start of January and was only 8.5% at the start of February.
Should speculation in the French media that Quebecor could acquire a minority stake in book publishing assets (Editis) belonging to Vivendi leads to a transaction, TD analyst Vince Valentini believes it would be a relatively modest investment (less than $80 million).
Barclays launched mid-week coverage of the all-electric vehicle maker’s business Lion without recommending action. The Saint-Jérôme company is well positioned in its sector, according to analyst Dan Levy, but he expects slower growth than expected until the end of the decade for electric trucks. Potential future liquidity needs are another element that calls for caution. He anticipates significant future dilution, which limits the upside potential on the stock market.
The Montreal franchisor MTY faces new headwinds, says TD’s Derek Lessard. “Tougher future earnings comparisons, upward pressure on wages and increased competition [en particulier dans le secteur de la pizza] “, he says in a note published on Friday. He is concerned about the current environment characterized by sharp increases in the prices of essential consumer products (groceries and gasoline), the increase in debt service obligations, and the rise in restaurant prices, which could putting pressure on household spending.
BRP has a new admirer on Bay Street. Scotia analyst Jonathan Goldman launched official coverage of the Valcourt-based recreational vehicle maker on Friday, recommending the stock be purchased. He notes that the benefit brought by the popularity of products during the pandemic has mostly faded and that rising rates are raising concerns about a slowdown in consumer spending. “These concerns are well founded, but are discounted far too much in the share price,” he believes. They are now 17 analysts out of 19 to suggest the purchase.
BMO on Thursday launched official coverage of the activities of Fiera Capital without recommending buying the title of the Montreal asset manager. Analyst Étienne Ricard believes that the 9% dividend yield seems sustainable unless there is a significant and sustained drop in assets under management (around 20% or more). “A boost in organic growth in assets under management is necessary for the stock to work. They are now eight analysts to follow the title. None of them offers to buy.
While rate cuts are possible by year-end and early 2024, the Fed’s stubbornness to keep its benchmark rate high could surprise markets, a Bureau monthly document reads. of the Chief Investment Officer National Bank. “One, because employment is slow to decline, but mostly because the Fed can’t afford to underestimate inflationary pressures a second time. Ultimately, this increases the odds that the Fed will get to a point where the markets will force it to pivot via an episode of heightened volatility. »
Alithya gained support mid-week after the release of its quarterly results. Analyst Jim Byrne, of the firm Acumen, is now offering to buy the shares of the Montreal company specializing in the digital transformation of organizations. “The continuous improvement for several quarters gives confidence in the future. They are now six analysts out of nine to hammer that it is necessary to buy.
The Quebec titles ofFood Couche-Tard, iA Group financial (Industrial Alliance), Reitmans, Velan, H2O Innovation, CGI, Goodfellow, TFI And MTY all reached a new 52-week high on the Toronto Stock Exchange this week.
The Toronto Stock Exchange will remain closed on Monday for the Family Day holiday in Canada.