Excluding companies that have received takeover bids, the Quebec stock that stood out the most on the Toronto Stock Exchange during the first half of the year was that of ADF Group.
The action of the Terrebonne company specializing in steel superstructures is up 83% since January 1, when the stock had already appreciated by 30% in 2022. Au Dragon Forgé remains under the radar. No analyst yet provides official follow-up.
Transat (68%), Logistec (54%), SNC-Lavalin (46%), Reitmans (42%), Stella-Jones (41%), Dialogue (34%), Air Canada (29%) and Bombardier (25 %) are other Quebec titles that had a very good first half.
Among the losers since the start of the year, we highlight Taiga (-28%), Fiera (-26%), Innergex (-24%), New World (-20%) and Lion (-17%).
An early analyst warmed to the outlook for mdf trade this week. 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 now suggests buying, however, attaching the tag “speculative” to his recommendation. He is the only one of three analysts to suggest the buy.
They are now four analysts to officially follow 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 warranted for the declining envelope-related business, but likely undervalues the packaging-related business. “As Supremex continues its transition to packaging, a significant revaluation could occur,” he believes.
Scientific entrepreneur Francesco Bellini and his son Roberto just sold shares of Bellus Health worth over $16 million to donate. This transaction was completed on June 21. Roberto Bellini explains to La Presse 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 said. 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 to be able to grow its global market share snowmobile. It’s clear, he says, that smaller players like Yamaha and Arctic Cat can’t keep up with BRP’s pace of 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-sides and ATVs.
Having nearly doubled in value over the past year, H2O Innovation’s stock benefits from a more generous valuation multiple. In a note released Thursday, analyst Naji Baydoun of iA Capital Markets said he expects further progress. 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 NASDAQ will be closed on Tuesday for Independence Day in the United States.
Quebec stocks of Transat, Air Canada, Couche-Tard, Dollarama, Stella-Jones, ADF and BMTC all reached a 52-week high on the Toronto Stock Exchange this week. In contrast, Innergex and GDI hit a 52-week low.
