Posted at 8:00 a.m.
While Dollarama will present its performance at the start of the fiscal year on Wednesday, the Stifel/GMP firm launched official coverage of the Montreal retailer’s activities over the past week.
Analyst Martin Landry becomes the 15e analyst to follow Dollarama and the 11e in this group to recommend the purchase.
Noting in particular the “impressive” course of the company over the years, he specifies that Dollarama has shaped an attractive business model allowing it to generate stable gross margins despite inflationary pressures.
To this end, he believes that business can benefit from high inflation causing people to adjust their consumption habits. Martin Landry also says he appreciates the growing exposure to Latin America thanks to the 50.1% stake in Dollarcity.
This expert estimates that Dollarcity is worth 5 billion today and that this retailer could eventually become a bigger company than Dollarama in the event that it continues to expand its activities in Latin American countries.
“Dollarama should be a core part of most Canadian investment portfolios due to the stock’s low-risk profile and the company’s growth prospects,” he said.
A new member of the board of directors Canadian National (CN) bought its first shares of the Montreal rail carrier this week. Elected director this spring, David Freeman bought a block of 1,000 shares on Tuesday. This transaction is valued at nearly $150,000.
After assessing the impact of a recession or economic slowdown on securities in the transportation sector, CIBC on Thursday withdrew its proposed purchase on Electric Lion while changing his opinion about CN to now suggest buying the company’s stock. Rail carriers offer attractive “defensive attributes” in the event the economy plunges into recession while offering upside potential if the macro backdrop remains favourable, according to analyst Kevin Chiang.
In the case of Lion, he sees better investment opportunities elsewhere and believes that the rise in rates is limiting the appreciation of growth stocks like that of the Saint-Jérôme electric vehicle manufacturer.
Coveo gained a new follower this week. TD launched on Tuesday an official follow-up of the activities of the Quebec company specializing in artificial intelligence applied to online commerce. Analyst David Kwan finds the valuation attractive and recommends buying the stock. Its 12-month target is set at $9.50. Coveo made its stock market debut in November at an initial price of $15. After rising to $18, the stock fell back to $4 in May and is now worth $6. Six out of nine analysts now recommend buying.
The big boss ofUni-Select has just purchased nearly $150,000 worth of additional shares in the Boucherville auto parts supplier. Brian McManus bought 5,000 shares on May 27.
The senior management of CAE will be in New York earlier this week to meet with investors and analysts for a two-day event. The Montreal-based flight simulator maker will tour its business aviation training center in New Jersey on Monday, followed by a series of presentations and interactive demonstrations of its products and services on Tuesday. The event will be webcast live.
The big boss of 5N More and two members of the board have just purchased nearly $900,000 worth of shares in the Montreal supplier of technological materials. Director Jean-Marie Bourassa bought 175,000 shares on Monday, while CEO Gervais Jacques bought a block of 150,000 shares on May 27, and Chairman of the Board Luc Bertrand bought 250,000 shares on May 26. .