In this column published every two weeks, we give you concrete ideas for investing your money.
Looking for stocks to fill your portfolio at the start of the year? RBC has just updated its list of the 30 best investment “ideas” among the approximately 1,700 listed companies it covers globally.
• Also read: The smart investor: a blessed year for Quebec investors
• Also read: In the eye of Quebec Inc.: a young techno company swallowed up by foreigners
In the most recent version of the list, released earlier this month, RBC added eight companies and removed eight others.
Here I shine the spotlight on 10 of RBC’s 30 “favorite” companies; you will find the 20 others selected by RBC at the end of this column.
And remember: stock picking is a fun, but risky, sport!
Canada
Alimentation Couche-Tard
Current price: $76
Target price: $94
Our multinational gas station company is the only Quebec company to appear on the RBC list. The bank believes that despite the looming macroeconomic challenges, Couche-Tard has several cards in its game to increase its sales, optimize its supplies and reduce its expenses. RBC further believes that the retailer’s strong presence in Norway gives it a head start over its competitors in anticipating the impact of the increasing number of electric vehicles. RBC points out, however, that for the moment, fuel sales are essential to Couche-Tard’s profit growth.
Constellation Software
Constellation Software
Current price: $4400
Target price: $5300
This Toronto technology company provided its shareholders with a return annualized by 30% over the last 10 years and according to RBC, it’s not over. “We believe that Constellation Software is likely to generate one of the best long-term returns in our coverage universe,” writes the institution. In the specialized software niche, Constellation has made more than 1,000 business acquisitions since its founding in 1995.
CPKC (Canadian Pacific)
Photo CPKC
Current price: $107
Target price: $124
“We continue to see exceptional growth opportunity for the next decade following the acquisition of Kansas City Southern [KCS]writes RBC. CPKC’s stock market value fell following the US elections; We believe the fall was too great and we expect tangible elements to drive the company’s stock to grow in 2025.” Remember that the purchase of KCS, in 2023, allowed CP to extend its network to southern Mexico.
Cameco
Photo Cameco
Current price: $71
Target price: $90
Headquartered in Saskatchewan, Cameco is one of the largest uranium producers in the world. “We believe the company is well-positioned to benefit from the renewed focus on nuclear power and the tightening uranium market, particularly as it is a Western producer while buyers are looking for security for their supplies.”
UNITED STATES
Bank of America
AFP
Current price: US$47
Target price: US$50
In recent years, the North Carolina-based bank “has consistently delivered increasing profitability through thoughtful growth, attention to spending and a rigorous lending policy,” says RBC. This notes that the investment division of Bank of America counts among its clients no less than 78% of the companies making up the Fortune Global 500. “The company is starting to go on the offensive after spending years cleaning up the problems of the financial crisis,” writes RBC.
-First Solar
Photo First Solar
Current price: US$191
Target price: US$280
RBC first appreciates the “solid order book” of the American solar panel manufacturer. Its analysts also like the fact that First Solar’s factories are located primarily in the United States (as well as Malaysia and Vietnam). “We believe First Solar’s manufacturing footprint and supply chain are key competitive advantages,” RBC writes. Manufacturing in the United States allows the company to benefit from generous subsidies, reduce transportation costs and avoid the customs tariffs promised by Donald Trump.
ConocoPhillips
Photo ConocoPhillips
Current price: US$106
Target price: US$135
This American hydrocarbon giant enjoys a “solid” financial balance sheet and emphasizes return for shareholders, underlines RBC. ConocoPhillips produces oil in the United States, but also in Norway, Canada, Libya, China, Australia and Malaysia. Its production costs are lower than those of many of its competitors. The company is also active in the natural gas sector, considered a transition energy.
Illustration Pinterest
Current price: US$30
Target price: US$48
RBC believes that this lesser-known social network has better growth prospects than other companies in the sector. Pinterest “is particularly useful for finding inspiration and making discoveries, but in a narrower range of topics and product categories,” writes the bank. This recognizes that Pinterest’s stock is relatively expensive compared to its profits. “We believe Pinterest deserves a premium given that it is monetizing its platform less, a situation the company’s new leadership appears to be addressing, and that it is growing its margins faster than its revenues. peers,” says RBC.
Europe
Ferrari
The VUS Purosangue de Ferrari
Photo Ferrari
Current price: €420
Target price: €470
“The successful launch of new vehicles like the Roma and the Purosangue should allow Ferrari to penetrate new demographic categories as well as the important Chinese luxury car market,” says RBC, noting that the Italian manufacturer sells 13,000 vehicles per year. while its production capacity amounts to 15,000 vehicles per year. The bank’s analysts also believe that fears against Ferrari in connection with electrification are “exaggerated” since the demand for the company’s electric products is “strong” and that it is able to to sell them more expensive than its combustion vehicles.
Nestlé
Illustration Nestlé
Current price: 74 CHF (Swiss francs)
Target price: 93 CHF
Weakened by losses in market share, the Swiss food giant fired its CEO last summer. Nestlé’s new big boss, Laurent Freixe, has promised to invest more in marketing in the hope of turning the tide and relaunching flagship brands like Nespresso and KitKat. If the strategy works, patient investors could be rewarded, RBC believes.
Other stocks on the RBC list: American International Group, Boston Scientific Corporation, Gaming and Leisure Properties, GFL Environnmental, Gitlab, HubSpot, Illumina, London Stock Exchange Group, MSCI, PayPal Holdings, PG&E Corporation, Safran, Sarepta Therapeutics, Shell, Siemens, Snowflake, Veeva Systems, Xero, Xylem, Zalando.
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