2023-10-23 16:21:28
Dollarama has just announced the hiring of Patrick Bui as Chief Financial Officer (CFO). (Photo: 123RF)
What to do with Dollarama and Transat AT and Neighborly Pharmacy titles? Here are some analyst recommendations likely to move prices soon. Note: the author may have an opinion completely different from that expressed.
Dollarama Inc. (DOL, $94.11): a new CFO to tackle international business
The discount retailer has just announced the hiring of Patrick Bui as Chief Financial Officer (CFO). He will take office on December 18.
For several years, he had been the Chief Financial Officer of Transat AT, after having served in the same capacity at Kruger Energy. He previously worked for RBC and Morgan Stanley as an investment banker and advisor on growth and financing strategies.
His hiring is timely, according to Vishal Shreedhar, an analyst at National Bank Financial, who recently wrote about the company’s potential for mergers and acquisitions to support its growth.
Dollarama is a leading Canadian retailer whose strength comes from its defensive retail properties, high return on invested capital and solid growth, the analyst explains.
But he also believes that the firm will want to continue its expansion on the international scene, starting first from its co-ownership of Dollarcity in Latin America, and then into new regions.
Although there are still good growth opportunities for Dollarama’s Canadian operations, the analyst believes that in the longer term, Patrick Bui’s mission will be to develop new international vectors.
The Financial analyst says he is confident about the retailer’s share price given its orientation towards defensive growth well supported by excellent cash flow, a solid financial balance sheet and the resilience of its sales.
His recommendation is “outperform” and his target price is $104.
Transat AT Inc. (TRZ, $3.12): will the departure of the financial director complicate the refinancing of the company?
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