Richard Dufour
The Press
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CN management has “left on the table” more than $1 billion in profits over the past six years, according to Deutsche Bank, the equivalent of more than $20 billion in market value at the current valuation level.
Deutsche Bank expects the appointment of the new CEO to be announced at the end of the month and changes to be made quickly to improve operational efficiency. So the stock could rise to $200 by 2024, analyst Amit Mehrotra believes. Investors are underestimating the potential for the changes that can be made, he said.
In a report published Friday, this expert changes his recommendation and now suggests buying the action of the Montreal rail carrier in anticipation of the changes to come.
In his view, the true operating ratio potential (a measure of efficiency that expresses expenses as a percentage of revenue) is 53.7% over the medium term, which translates to about $10 in profit per share by 2025, or about 70% more than the estimated profit potential for fiscal year 2021.
Operationally, he notes significant differences in several financial measures between the CP and the CN. Notably in terms of revenue ton-miles, average train speed on the network, and average dwell time where CP is performing much better.
The Montreal pharmaceutical company Therapeutic Knight is the only Quebec company appearing on the short list of six attractive securities to buy, according to the Financial Letter Cote 100.
“Knight is shunned by investors who will have been disappointed by the speed at which management deployed the substantial cash flow resulting from its listing on the stock market in 2014”, underline the experts of Cote 100, asset manager of Saint-Bruno-de – Montarville.
“The acquisition of Biotoscana Group in 2019, however, completely changed the look of the company, making it an operating company rather than an investment firm in the pharmaceutical sector”, it is specified in a commentary sent to clients this month.
“The integration of this company, which is well under way, provides both attractive earnings and very attractive long-term growth potential in South America. Its pan-American network (excluding the United States) provides it with a significant advantage that allows it to enter into distribution agreements with pharmaceutical manufacturers. »
Cote 100 adds that Knight is in “excellent” financial health and well positioned to consider further acquisitions in a “very fragmented” industry.
The acquisition of fair through Natixis becomes more and more improbable with the announcement on Wednesday of the sale of the block of shares of Fiera held by Natixis. CIBC analyst Nik Priebe points out that Natixis was seen as the most logical suitor for Fiera in a takeover scenario… Fiera’s dividend yield remains very attractive at 8.4%.
GDI is the only Quebec name on the list of 14 stocks to hold for 2022 presented this week by iA Capital Markets. “Janitorial and technical maintenance services will be in high demand for the foreseeable future, particularly with regard to services related to ventilation, heating and air conditioning given the growing importance of the quality of the air in offices, shopping malls, government buildings, arenas, etc. “Says analyst Neil Linsdell.
Resolute Forest Products earned one more recommendation earlier this week. CIBC’s Hamir Patel is now suggesting buying the stock from the Montreal lumber producer and exporter. This analyst has just improved his timber price forecasts for 2022.
The Quebec titles of Dorel and iA Financial Group (Industrial Alliance) again reached a 52-week high in Toronto. At the opposite, Coveo, Taiga, Hexo, Marlet Goodfood, Lightspeed, Boralex, Innergex and Xebec just hit a new 52-week low.
The New York Stock Exchange and NASDAQ will remain closed Monday on the holiday marking Martin Luther King’s birthday. Banks, some offices and government buildings will also be closed in the United States.
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Related
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Richard Dufour
The Press
–
CN management has “left on the table” more than $1 billion in profits over the past six years, according to Deutsche Bank, the equivalent of more than $20 billion in market value at the current valuation level.
Deutsche Bank expects the appointment of the new CEO to be announced at the end of the month and changes to be made quickly to improve operational efficiency. So the stock could rise to $200 by 2024, analyst Amit Mehrotra believes. Investors are underestimating the potential for the changes that can be made, he said.
In a report published Friday, this expert changes his recommendation and now suggests buying the action of the Montreal rail carrier in anticipation of the changes to come.
In his view, the true operating ratio potential (a measure of efficiency that expresses expenses as a percentage of revenue) is 53.7% over the medium term, which translates to about $10 in profit per share by 2025, or about 70% more than the estimated profit potential for fiscal year 2021.
Operationally, he notes significant differences in several financial measures between the CP and the CN. Notably in terms of revenue ton-miles, average train speed on the network, and average dwell time where CP is performing much better.
The Montreal pharmaceutical company Therapeutic Knight is the only Quebec company appearing on the short list of six attractive securities to buy, according to the Financial Letter Cote 100.
“Knight is shunned by investors who will have been disappointed by the speed at which management deployed the substantial cash flow resulting from its listing on the stock market in 2014”, underline the experts of Cote 100, asset manager of Saint-Bruno-de – Montarville.
“The acquisition of Biotoscana Group in 2019, however, completely changed the look of the company, making it an operating company rather than an investment firm in the pharmaceutical sector”, it is specified in a commentary sent to clients this month.
“The integration of this company, which is well under way, provides both attractive earnings and very attractive long-term growth potential in South America. Its pan-American network (excluding the United States) provides it with a significant advantage that allows it to enter into distribution agreements with pharmaceutical manufacturers. »
Cote 100 adds that Knight is in “excellent” financial health and well positioned to consider further acquisitions in a “very fragmented” industry.
The acquisition of fair through Natixis becomes more and more improbable with the announcement on Wednesday of the sale of the block of shares of Fiera held by Natixis. CIBC analyst Nik Priebe points out that Natixis was seen as the most logical suitor for Fiera in a takeover scenario… Fiera’s dividend yield remains very attractive at 8.4%.
GDI is the only Quebec name on the list of 14 stocks to hold for 2022 presented this week by iA Capital Markets. “Janitorial and technical maintenance services will be in high demand for the foreseeable future, particularly with regard to services related to ventilation, heating and air conditioning given the growing importance of the quality of the air in offices, shopping malls, government buildings, arenas, etc. “Says analyst Neil Linsdell.
Resolute Forest Products earned one more recommendation earlier this week. CIBC’s Hamir Patel is now suggesting buying the stock from the Montreal lumber producer and exporter. This analyst has just improved his timber price forecasts for 2022.
The Quebec titles of Dorel and iA Financial Group (Industrial Alliance) again reached a 52-week high in Toronto. At the opposite, Coveo, Taiga, Hexo, Marlet Goodfood, Lightspeed, Boralex, Innergex and Xebec just hit a new 52-week low.
The New York Stock Exchange and NASDAQ will remain closed Monday on the holiday marking Martin Luther King’s birthday. Banks, some offices and government buildings will also be closed in the United States.
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