Every Sunday, we shine the spotlight on elements of financial and stock market news that may be useful to investors, but which might have gone under the radar.
Published at 8:00 a.m.
Montreal provider of real-time video broadcasting solutions Haivision is no longer unanimously popular on Bay Street.
Haivision lost two buy suggestions midweek after reporting disappointing year-end financial performance and deciding to no longer offer forecasts to investors.
The four analysts officially following the company’s activities all recommended the stock before the results were released. Analyst Nick Corcoran of Acumen and Robert Young of Canaccord are now no longer recommending the purchase.
Bank of America has proposed since Tuesday to dump the title of BCE. Analyst David Barden says risks to the stock’s value are to the downside until the Montreal-based technology services provider can provide more clarity to resolve debt and dividend distribution issues. Asset sales are to be anticipated, according to him, and a reduction in the dividend is not impossible. He expects another difficult year for Canadian telecommunications companies.
His comrade Maher Yaghi, from Scotia, maintains for his part in a note published Friday that BCE is undervalued without, however, recommending purchase. He admits, however, that there may be an attractive opportunity for a long-term investor. He sees BCE as valuable and profitable assets that markets have difficulty valuing correctly due to the dividend policy. “BCE has no problem cash flowbut rather a problem of distribution ratio. »
In his note, he compares the profile and valuation of BCE with the situation that prevailed in 2007 when private investment funds attempted to acquire it and a merger with Telus was being discussed behind the scenes. His comparison shows that BCE is as undervalued as it was then and that the stock looks even more attractive given the cash flows that BCE is expected to generate in the coming years.
The Canadian National regained the support of TD earlier this week. Analyst Cherilyn Radbourne now suggests buying the shares of the Montreal rail carrier. She points out that the stock is trading at a discount to its peers and adds that comparing results with those of last year will be advantageous in 2025.
-“Investor sentiment towards CN has weakened over the past year due to downward revisions to forecasts. » The labor dispute and months-long period of uncertainty caused by the government’s decision to ask the Canada Industrial Relations Board to re-examine the question of whether rail is an essential service has been a major drag on profits, according to her, because the situation has led to a diversion of international intermodal traffic towards American ports.
“CN was much more affected by the process than CP, because it has a larger international intermodal franchise, and it also transports more U.S.-bound goods through a Canadian port ( primarily via Prince Rupert), which is the type of traffic most likely to be diverted in response to uncertainty. »
Analyst Cameron Doerksen of National Bank Financial, for his part, underlines in a note sent to his clients on Monday that investors’ patience with CN seems to be running out after a disappointing performance in 2024, and that the risk tariff remains a threat in the short term. “I nevertheless remain hopeful for a better year in 2025, but CN will have to demonstrate better execution for the stock to progress significantly,” he maintains, retaining his buy suggestion, but lowering his expectations.
The Montreal distributor of renovation equipment Richelieu Hardware presented a better-than-expected quarterly performance on Thursday and management expects the renovation market to regain strength this year. Investors also learned that Chief Financial Officer, Antoine Auclair, is now taking on the role of Chief Operating Officer in addition to his current duties. CIBC analyst Hamir Patel views the change favorably, as it should reassure investors about likely succession plans when CEO Richard Lord retires.
The New York Stock Exchange and the NASDAQ will remain closed Monday on the occasion of the Martin Luther King holiday. It will not be a holiday like in the past. Donald Trump’s inauguration ceremony on Monday will open the door to political announcements of interest, particularly for those interested in cryptocurrencies, but also for currency traders and investors who closely follow the threats of customs tariffs and their consequences. impacts on currencies and corporate profits on both sides of the border.
Quebec titles of BMTC, Debt et The trap all hit a 52-week high this week on the Toronto Stock Exchange.
On the other hand, those of BCE, Colabor, TVA, CN, Stella-Jones, Groupe Dynamite et Known reached their lowest level in the last 52 weeks this week.
