2023-08-15 19:29:01
Retailer Canadian Tire has withdrawn its financial targets by 2025. (Picture: 123RF)
What to do with Saputo, Boralex and Canadian Tire stocks? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that expressed.
Saputo (SAP, $27.94): strong results despite difficult conditions, but more visibility will be needed for the 2nd half of the year
The Quebec dairy products company presented good results for the 1st quarter of its 2024 fiscal year as earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 4% compared to the same period of the previous year, which turned out to be better than expected, says Chris Li, analyst at Desjardins Securities.
And this momentum seems to want to continue in the 2nd quarter thanks to the strength of the North American market which compensates for the softness of the European and international markets, softness attributable mainly to the export markets, explains the analyst.
Despite these results, the share price remains weak. The stock is trading at a multiple of 9.3 times EBITDA, while its historical average is 12 times, said Chris Li. fears that the stock will remain around the current level until all investors have better visibility regarding the results for the second half of the year.
The analyst forecasts that for the full financial year 2024, EBITDA growth will remain around 6% given the challenge of the global export market. He believes, however, that earnings growth will accelerate to around 13% the following year as the initiatives of the strategic plan will deliver the expected results and market conditions will stabilize.
The Desjardins analyst continues to recommend the purchase of the title, but it reduces its target price over one year, which goes from $38 to $35.
Boralex (BLX, $32.46: good results and the stock finally rebounds more than 6%
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