Stella-Jones is no longer unanimous within the Bay Street analyst community.
National Bank Financial on Tuesday withdrew its purchase proposal on Stella Jones. Analyst Maxim Sytchev argues that the Montreal-based manufacturer of telephone poles and railroad ties’ recent surge in shares has brought the stock to its fair valuation.
Maxim Sytchev continues to like the outlook, but he believes growth expectations are already well discounted in the stock and this could dampen future performance.
They are now six out of seven analysts to encourage their clients to buy the title.
The firm Stifel/GMP on Wednesday launched official coverage of the activities of Lightspeed without recommending the purchase of the action of the Montreal supplier of technological solutions for merchants. Analyst Suthan Sukumar calls Lightspeed a leader in its sector, but argues that the pivot of the business model towards customers deemed more profitable and the uncertain economic environment are elements that call for caution. Only 2 of the 14 analysts who follow Lightspeed do not offer the buy.
In the middle of the week, National Bank Financial withdrew its buy recommendation on the stock of ECB despite the attractive dividend yield of 6% and the fact that this dividend is set to be increased. Analyst Adam Shine points out in a note published Wednesday that the valuation multiple applied to the title of the Montreal telecommunications company is more likely to contract than to expand. He also believes that an eventual closing of the Rogers-Shaw merger will increase competition in Ontario, Alberta and British Columbia.
Goldman Sachs now suggests dumping the NC. Analyst Jordan Alliger suggested earlier this week the sale of the Montreal rail carrier’s stock primarily for valuation reasons. Only 5 of the 28 analysts who officially follow the stock recommend buying.
Innergex lost support from CIBC on Monday. Analyst Mark Jarvi withdrew his buy suggestion on the stock of the Quebec producer of renewable energy, indicating that he preferred more defensive stocks. His biggest concern is funding. He fears the need for external capital in a difficult market. They are still 7 analysts out of 12 to recommend the purchase of the title.
Quebecor lost support from RBC to start the year. Analyst Drew McReynolds withdrew his buy recommendation on the title of the parent company of Videotron on January 3. His decision is explained by the rise of the title for two months. He now expects the stock to hover in a tight range as the company “digests” the acquisition of Freedom Mobile. Nine of the 12 analysts who follow Quebecor still suggest buying the stock.
The Quebec titles of Saputoof Bomberof Goodfellow and of Supremex all hit a 52-week high on the Toronto Stock Exchange this week.
The New York Stock Exchange and NASDAQ will remain closed Monday in honor of Martin Luther King Jr.