Excluding the companies that received takeover bids, the Quebec security that stood out the most on the Toronto Stock Exchange during the first half of the year was that of the ADF Group.
The action of the Terrebonne company specializing in steel superstructures is up 83% since the 1er January, when the stock had already appreciated by 30% in 2022. At Forged Dragon remains under the radar. No analyst yet ensures an official follow-up.
Transat (+68%), Logistec (+54%), SNC Lavalin (+46%), Reitmans (+42%), Stella Jones (+41%), Dialogue (+34%), Air Canada (+29%) and Bomber (+25%) are other Quebec titles that had a very good first half.
Among the losers since the beginning of the year, let’s underline Taiga (-28%), Fiera (-26%), Innergex (-24%), New world (-20%) and Lion (-17%).
An early analyst warmed this week to the outlook for mdf trade. Nick Corcoran, of the firm Acumen, has been proposing since Thursday the purchase of the action of the operator of e-commerce platforms from Longueuil. His decision came after he learned of the year-end financial performance. “Management has made progress in improving margins. Given the brightening outlook, he is now suggesting a buy, albeit attaching the “speculative” tag to his recommendation. He is the only one, out of three analysts, to propose the purchase.
They are now four analysts to follow officially Supremex and they all recommend the title of the Montreal manufacturer of envelopes and packaging products. Canaccord’s Matthew Lee kicked off his coverage earlier this week by offering the buy. The current valuation overlooks the opportunity related to packaging activities, he said. The stock is trading at a reasonable level that might be justified for declining envelope-related businesses, but likely undervalues packaging-related businesses. “As Supremex continues its transition to packaging, a significant revaluation could occur,” he believes.
The scientific entrepreneur Francesco Bellini and his son Roberto have just sold shares of bellus Health worth more than $16 million to donate. This transaction was completed on June 21. Roberto Bellini explains to The Press that the organizations that will benefit from the Bellini family’s donation have not yet been chosen. In the meantime, the money has been put into family foundations, he says. The sale of Laval-based pharmaceutical company Bellus Santé to British giant GSK was announced in April, a deal valued at $2 billion that closed this week.
After learning mid-week that Yamaha plans to exit the snowmobile segment by 2025, Desjardins analyst Benoit Poirier expects BRP be able to increase its share of the global snowmobile market. It is clear, in his view, that smaller players like Yamaha and Arctic Cat cannot keep pace with BRP’s investment and innovation in this area. The other major player in this market is obviously Polaris. Benoit Poirier points out that we now have to see if Yamaha will later withdraw from other segments such as side-by-side vehicles and ATVs.
Having almost doubled in value over the past year, the share of H2O Innovation benefits from a more generous valuation multiple. In a note released Thursday, analyst Naji Baydoun of iA Capital Markets said he expects further growth. This expert believes that the title of the Quebec company specializing in water treatment continues to trade at a discount compared to its comparables. “The combination of strong growth, improving profitability and a higher relative valuation multiple could potentially support an annualized total return of around 20% going forward. The seven analysts who follow the stock all recommend buying.
The celebrations linked to two national holidays will shorten the week for investors. The Toronto Stock Exchange will be closed on Monday for the Canada Day long weekend. The New York Stock Exchange and the NASDAQ will be closed on Tuesday for Independence Day in the United States.
The Quebec titles of Transat, Air Canada, Couche-Tard, Dollarama, Stella Jones, ADF And BMTC all hit a 52-week high on the Toronto Stock Exchange this week. At the opposite, Innergex And GDI hit a 52-week low.