The wise investor | Power Corporation loses its only buy suggestion

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


The Montreal financial conglomerate Power Corporation has just lost the last buy recommendation for its stock.

Desjardins Securities on Friday withdrew its buy suggestion on the stock of Power Corporation.

Although he finds the 6% dividend yield and the valuation attributed by investors attractive, analyst Doug Young sees little reason to favor a significant appreciation of the stock over the next year.

Doug Young was the only one still suggesting the buy among the nine analysts who officially track Power Corporation on Bay Street.

Three Quebec companies stand out on Credit Suisse’s list of favorite Canadian securities for 2023. Lightspeed, Innergex and the National Bank are the three Quebec companies on this list of 18 titles presented on Friday.

the NC lost support from CIBC on Tuesday. Essentially, analyst Kevin Chiang justifies the withdrawal of his buy suggestion on the title of the Montreal rail carrier by the potential return expected compared to its target price over a 12-month horizon. They are now only 5 analysts out of 25 to propose to buy the action of CN.

Laurentian Bank Securities presented this week the list of its six favorite stocks for 2023. No Quebec stock is on this short list which includes Exchange Income Corp., Calian Group, Major Drilling International, Wesdome Gold Mines, Vox Royalty and Atrium Mortgage Investment Corp.. Two Quebec companies found themselves on this list a year ago, namely Heroux-Devtek and WSP.

The possibility of even greater dilution in Lion worries investors. The capital just raised by the 100% electric vehicle manufacturer in Saint-Jérôme will help it finance its growth initiatives, but the issue of securities announced this week creates a significant dilution of the shareholding, underlines analyst Mark Neville, from Scotia. The transaction is also indicative of the financial situation in which Lion finds itself, that is to say that the company continues to need significant external capital, he adds, specifying that he expects possible additional dilution. His colleague Benoit Poirier, at Desjardins, is of the same opinion.

CIBC analyst John Zamparo on Thursday withdrew his sell recommendation on the stock. Hexo. Without however proposing the purchase of the share of the producer of jar of Gatineau, he notes that the progress is “palpable”. “Hexo is on a credible path to profitability and I see less downside risk at this stage. There are still no buy suggestions from the eight analysts who officially track Hexo.

Louis Vachon has just bought shares of the Ontario space technology supplier again MDA. He bought a block of 25,000 shares on December 7. The former CEO of National Bank has been a member of the MDA board of directors since the spring. He also bought large blocks of MDA shares in August, September and November.

The Quebec titles of Metro, Couche-Tard, NC, TFI, Bomber, CGI, ADF Group and Stella Jones all hit a 52-week high on the Toronto Stock Exchange this week. On the other hand, Waterfalls, NanoXplore, Lion, BMTC, Taiga, Band VAT, Alithya, Lassonde, Theratechnologies, Hexo and Bitfarms hit a new 52-week low this week.


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