Latest news with #LukeHannan
Business Insider
5 days ago
- Business
- Business Insider
Canaccord Genuity Reaffirms Their Hold Rating on BRP (DOOO)
In a report released yesterday, Luke Hannan from Canaccord Genuity maintained a Hold rating on BRP (DOOO – Research Report), with a price target of C$60.00. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Hannan is a 4-star analyst with an average return of 10.5% and a 45.67% success rate. Hannan covers the Consumer Cyclical sector, focusing on stocks such as BRP, AutoCanada, and Spin Master. In addition to Canaccord Genuity, BRP also received a Hold from Citi's James Hardiman in a report issued yesterday. However, on the same day, Stifel Nicolaus upgraded BRP (NASDAQ: DOOO) to a Buy. Based on BRP's latest earnings release for the quarter ending January 31, the company reported a quarterly revenue of $2.1 billion and a GAAP net loss of $219.2 million. In comparison, last year the company earned a revenue of $2.69 billion and had a net profit of $188.5 million
Globe and Mail
16-05-2025
- Business
- Globe and Mail
Small caps to watch: High Liner Foods, Bird Construction, Reitmans and much more
A weekly look at some small-cap stocks making news - or about to. As of market close on Thursday, May 15, Canada's S&P/TSX SmallCap Index was up by about 7 per cent over the past 52 weeks, not including dividends. The index reached a 52-week high of $826.17 on Thursday, which is still below its record high of 852.21 in April, 2022. The Russell 2000 in the U.S. was down nearly one per cent over past 52 weeks. Shares of High Liner Foods Inc. (HLF-T) hit a multi-year high this week, despite a mixed first-quarter earnings report, amid growing investor confidence that the seafood company is on track to grow earnings this year and is diversified enough to lessen the impact of tariffs. 'We came away from the quarter with reinforced confidence in management's ability to navigate tariffs and macroeconomic uncertainty,' Canaccord Genuity analyst Luke Hannan wrote in a note. After markets closed on Tuesday, the Halifax-based company reported sales of US$268.4-million, down from US$277-million a year earlier. The result was below expectations of US$275.3-million, according to S&P Capital IQ. Net income was US$15.3-million or 51 cents US per share compared to US$16.6-million or 49 cents US a year ago. Adjusted EPS of 55 cents US was the same as last year and ahead of expectations of 52 cents US. The company said sales volume for the first quarter ended March 29 fell 1.5 per cent, due mainly to the impact of Lent (a culturally significant period for seafood consumption) falling in the second quarter this year compared to the first quarter last year. It also cited a slowdown in the foodservice industry with cautious consumers pulling back on dining outside the home. High Liner said the drop was offset by growth in its contract manufacturing business and an increase in its retail business, including expanding distribution of premium products designed to replicate restaurant dining experiences. High Liner's retail products are sold in grocery stores in Canada and the U.S. under the High Liner, Fisher Boy, Mirabel, Sea Cuisine and Catch of the Day brands. It also sells products to restaurants and institutions under the High Liner, Mirabel, Icelandic Seafood and FPI labels. It also sells private-label seafood products to North American food retailers and foodservice distributors. In a call with analysts this week, CEO Paul Jewer said the business is supported by a diverse supply chain and is taking 'a disciplined, patient approach' to mergers and acquisitions. He also said the company is monitoring impacts from tariffs and that it has 'lots of mitigation plans.' Canaccord's Mr. Hannan reiterated his 'buy' rating and $21 target price after the earnings report. 'High Liner's broad portfolio, spanning across price points, and its focus on innovation fuelled retail sales and volume growth during the quarter,' he wrote. 'Notably, all of the company's U.S. brands captured market share in both dollars and unit sales, with Fisher Boy emerging as the fastest-growing brand in the category.' He said the company has a diversified global supply chain spanning about 30 different countries, which should help it mitigate the impact of tariffs. 'The company is prepared to implement pricing actions to offset the higher raw material costs expected in the back half of the year due to tariffs,' he wrote. 'In our view, High Liner's leading position as a North American seafood processor, strong free cash flow profile, and clean balance sheet supportive of M&A opportunities present compelling upside for the shares.' BMO Capital Markets analyst Nevan Yochim increased his target to $19.50 from $19 and kept his 'market perform' (hold) rating. 'The challenging consumer backdrop remains a headwind for foodservice, offset by an expectation for ongoing improvement in retail,' he wrote. 'We believe High Liner Foods has a long-term opportunity to grow its leading position in North American frozen branded value-added seafood. In the near term, a challenging macro environment is reducing consumer demand and earnings growth. At current levels, we see balanced risk-reward.' The stock climbed to $18.28 on Thursday, its highest point since 2017. It was also the same day the S&P/TSX Composite Index reached a record high. Other small caps making news this week: Reitmans (Canada) Ltd. (RET-A-T, RET-X) is facing pressure from a group of shareholders who are calling for 'immediate action' to 'halt and reverse the ongoing governance concerns and stagnation of shareholder value.' The self-described 'concerned shareholders' issued a statement on Tuesday alleging 'consistently poor decision-making' at the board level and demanded governance changes to 'address the current dominance of the executive chairman, Stephen Reitman.' It also called for the removal and replacement of two non-executive board directors 'due to independence issues and a clear misalignment with the interests of all shareholders.' The group also called for an end to the company's dual-class share structure and for it to graduate from the TSX Venture Exchange to the Toronto Stock Exchange. The release states that, as of May 12, Reitmans' market capitalization is $105-million while its net cash stands at $158-million and its net book value is approximately $280-million. 'This extraordinary situation has arisen from continuous poor decision-making at board level and we, as minority shareholders, cannot allow this to continue,' the release states. Read the full release here ** Bird Construction Inc. (BDT-T) reported first-quarter profit and revenue that were below expectations. After markets closed on Wednesday, the company reported construction revenue of $717.6-million, up from $688.2-million a year earlier. The expectation was for revenue of $742.6-million, according to S&P Capital IQ. Net income came in at $9.4-million or 17 cents per share compared to $10-million or 19 cents a year ago. Adjusted earnings were $12.9-million or 23 cents compared to $11.3-million and 21 cents a year ago. The expectation was for adjusted earnings of 18 cents. BMO Capital Markets analyst John Gibson reiterated his 'outperform' (buy) rating and increased his target price to $30 from $28 after the earnings, citing 'the strong bidding environment' that should help the company's growth throughout the year. 'Construction tailwinds remain strong, and we expect BDT should continue to win its share of work moving forward,' he wrote in a note. More importantly, margin improvement remains key to the story as the company (and industry) move away from higher-risk bids and projects. In the past 52 weeks, the stock has traded between a high of $32.67 and a low of $17.52. ** North American Construction Group Ltd. (NOA-T) reported higher revenue but lower profit for its first quarter ended March 31. After markets closed on Wednesday, the company reported revenue of $340.8-million compared to $297-million in the same period last year. The result was ahead of expectations of $297.5-million. Net income of $6.6-million or 21 cents per share compared to $11.5-million or 39 cents. Adjusted earnings came in at 52 cents, down from 79 cents last year. The expectation was for adjusted earnings of 68 cents. 'It's no surprise that severe weather impacts our business, and Q1 2025 proved especially challenging across both geographies [Australia and North America],' stated CEO Joe Lambert in a release. 'However, we remain optimistic about the more stable conditions expected for the remainder of the year.' He said the company's full-year expectations remain intact, and that it continues to see 'significant opportunities and tailwinds' in the heavy civil infrastructure and mining industries in Australia and North America. In the past 52 weeks, the stock has traded between a high of $31.66 and a low of $18.83. ** AutoCanada Inc. (ACQ-T) reported first-quarter earnings that beat expectations. After markets closed on Wednesday, the company reported revenue of $1.24-billion, up from $1.21-million for the same quarter last year. The result was ahead of expectations of $1.17-billion. Adjusted EBITDA was $38.5-million compared to $22-million in the prior-year quarter and ahead of expectations of $31.1-million. Net income from continuing operations was $9.7-million or 37 cents, above the consensus estimate of 18 cents per share and compared to $8-million or 35 cents last year. Acumen Capital analyst Trevor Reynolds, who has a 'speculative buy' and $22.50 target price on the stock, said the results beat his estimates as sales improved through the quarter and the company accelerated its cost-saving initiatives. 'While results YTD [year to date] have been stronger than expected, management remains cautious based on tariffs and emerging signs of consumer fatigue,' he wrote in a note. 'As a result, ACQ remains focused on what [it] can control, which is the previously stated plan to significantly reduce costs and leverage.' Canaccord Genuity analyst Luke Hannan reiterated his 'buy' and increased his target price to $24 from $22. 'Despite a strong finish to Q1/25, and a solid start to Q2/25, AutoCanada is remaining cautious on the outlook for the balance of the year, expecting consumer sentiment to weaken as the impact of tariffs take hold,' he wrote in a note. 'With that said, the company has ample offsets from continued execution of its opex savings plan, the planned sale of its U.S. business, and lower floorplan costs, thanks to fewer vehicles on hand and lower central bank rates. We are mindful of concerns around the health of the consumer yet remain optimistic that ACQ is on track for a meaningful re-rating.' National Bank Financial analyst Maxim Sytchev reiterated his 'outperform' (buy) rating and $25 price target. 'Any consumer discretionary name working (or not) is a function of a cycle — if one adopts a 'no recession' view, there is a lot of upside in ACQ, especially post-money-losing U.S. business sale and operational cost savings that appear to be on track," he wrote in a note. 'If one is much more dour on macro outlook, shares are nowhere close to discounting a recession... Given the stepped-down rhetoric on tariff intensity, at this point, a more constructive skew will be more value accretive, in our view." In the past 52 weeks, the stock has traded between a high of $22.37 and a low of $13.75. ** Automotive Properties REIT (APR-UN-T) reported higher revenue and adjusted funds from operations (AFFO) for its first quarter ended March 31. After markets closed on Wednesday, the REIT reported rental revenue increased by 2.1 per cent to $23.9-million compared to $23.4-million a year ago. The result was roughly in line with expectations of $23.8-million. Net income of $7.6-million dropped from $20.9-million a year ago. AFFO increased to $12.4-million, or 25 cents per unit, which was in line with expectations and compared to $11.7-million or 23 cents per unit last year. National Bank Financial analyst Giuliano Thornhill maintained his 'sector perform' (hold) rating and $10.75 target after the earnings were released, saying the results were as expected. 'M&A growth remains a primary objective for APR, and there is ongoing demand for the monetization of real estate values,' he wrote. 'The unknown continues to be whether the current uncertain macro backdrop impacts sellers' expectations on pricing. Absent M&A, we estimate our current AFFO payout ratio to be on track to reach mid-70-per cent range by next year, which could open the discussion to increasing distributions given the credit quality of the portfolio. We remain on the sidelines until further clarity is revealed regarding the uncertainty's impact on dealers, the inflation outlook moderates (which increases the rental step profile appeal), or interest rates decline, making yield instruments more sought after.' In the past 52 weeks, the units have traded between a high of $13.33 and a low of $9.04. ** Yellow Pages Ltd. (Y-T) reported a drop in first-quarter revenue and profit. Before markets opened on Wednesday, the company reported revenue of $50.8-million in the quarter ended March 31, down from $55-million a year ago. Net income of $5-million or 35 cents per share was down from $8.4-million or 61 cents last year. In the past 52 weeks, the stock has traded between a high of $12.19 and a low of $8.70. ** Dye & Durham Ltd. (DND-T) reported results for its third quarter ended March 31 that missed expectations. Management also said it's exploring the sale of non-core assets and has halted mergers and acquisitions 'to concentrate on operational execution.' After markets closed on Tuesday, the cloud-based legal practice management software company reported revenue rose 1 per cent to $108.3-million in the period versus a year earlier. The result was below expectations of $116.1-million. Its net loss of $21.8-million was relatively unchanged compared to a net loss of $21.1-million a year ago. BMO Capital Markets analyst Thanos Moschopoulos cut his target to $16 from $20 after the earnings came out, but kept his 'outperform' (buy) rating. He lowered his forward-looking EBITDA forecasts, citing 'a more challenging outlook for real estate transaction volumes,' but still views the 'risk/reward as attractive, particularly given the potential for asset divestitures and deleveraging.' CIBC analyst Scott Fletcher lowered his target price to $17 from $21 after the earnings release and maintained his 'outperformer' (buy) rating, citing trade and tariffs as a weight on near-term performance. Despite the earnings miss, Mr. Fletcher said he was 'relatively encouraged' after the latest earnings. 'Early progress on the renewal process is reassuring, with DND retaining 90 per cent of renewal-eligible customers, avoiding a worst-case scenario where a large cohort of customers left for competing products,' he wrote. 'The board also disclosed details of its new strategic plan that we think will improve the business over the long run.' In the past 52 weeks, the stock has traded between a high of $22.59 and a low of $7.85. ** K-Bro Linen Inc. (KBL-T) reported the largest acquisition in its history this week, alongside higher first-quarter revenue that beat expectations. On Tuesday, the Edmonton-based owner and operator of laundry and linen processing facilities, said it acquired U.K.-based Star Mayan Ltd. for £107.2-million (approximately $199.1-million Canadian), which it said is on a cash-free, debt-free basis, 'including a normalized level of working capital.' CEO Linda McCurdy called it a 'transformative acquisition' and the largest acquisition in K-Bro Linen's history. 'The acquisition, combined with K-Bro's existing U.K. businesses, Fishers and Shortridge, creates a top-three national platform in the attractive U.K. market serving both healthcare and hospitality customers,' she said in a release. After markets closed on Tuesday, the company also reported a 13-per-cent rise in first-quarter revenue to $91-million, up from $80.2-million a year ago. The result was ahead of expectations of $89.2-million. Net earnings of $846,000 or 8 cents per share compared to $1.8-million or 17 cents last year. Adjusted net earnings were $2.7-million or 26 cents per share compared to $3.6-million or 34 cents a year ago. The expectation was for earnings of 25 cents in the latest quarter. In the past 52 weeks, the stock has traded between a high of $40.03 and a low of $30.69. ** Robinhood Markets Inc. (HOOD-Q) said on Tuesday it will buy Canadian crypto firm WonderFi (WNDR-T) for $250-million, as the popular commission-free brokerage looks to expand its international footprint. The all-cash deal values WonderFi at 36 Canadian cents per share, a 41 per cent premium to its previous close. WonderFi's brands include crypto exchanges Bitbuy and Coinsquare. It processed over $3.57-billion in crypto trading volumes in fiscal year 2024, 28 per cent higher than the previous year. The company's focus on both 'beginner and advanced crypto users' makes it an 'ideal partner,' said Johann Kerbrat, senior vice-president and general manager of Robinhood Crypto. WonderFi's stock has declined 13.6 per cent on the Toronto exchange so far in 2025, giving it a market capitalization of $163.9-million. Its employees will join Robinhood, which already has a workforce of more than 140 in Canada. Interest in crypto has surged this year, with the price of bitcoin rising despite disruption due to economic uncertainty and trade tensions. - Reuters ** Aimia Inc. (AIM-T) reported a 6-per-cent revenue increase in its first quarter compared to the same period last year. Before markets opened on Tuesday, the investment holding company reported revenue of $129.8-million, up from $122.1-million a year earlier. The result was below expectations of $131.3-million. Net earnings of $400,000 or 55 cents per share compared to a net loss of $4.5-million or 9 cents a year ago. The company said it generated net earnings of 55 cents per common share due to the $53.8-million net gain from the substantial issuer bid completed in February. In the past 52 weeks, the stock has traded between a high of $3.10 and a low of $2.22. ** Rogers Sugar Inc. (RSI-T) reported second-quarter results that were below expectations. Before markets opened on Tuesday, the company reported revenues of $326.3-million, up from $300.9-million a year ago but below estimates of $333.4-million. Net earnings of $20.5-million or 14 cents per share compared to $13.9-million or 11 cents a year earlier. Adjusted EPS came in at 13 cents, down from 17 cents a year earlier. The expectation was for adjusted EPS of 15 cents in the latest quarter. 'The current market volatility associated with the revised trade conditions related to the new U.S. tariffs on imports has had a limited impact on our business and the business of our customers thus far,' the company stated. 'We are closely monitoring this evolving situation and engaging with the different stakeholders involved.' National Bank Financial analyst Zachary Evershed maintained his $6.25 price target and 'sector perform' rating on the stock after the earnings, stating in a note that 'the benefit of present investments remains over the horizon, and we see timelier options elsewhere.' In the past 52 weeks, the stock has traded between a high of $6.47 and a low of $5.22. ** Quipt Home Medical Corp. (QIPT-T) shares sank this week after the U.S.-based home medical equipment provider reported first-quarter results that came in below expectations. After markets closed on Monday, the company reported revenue of US$57.4-million compared to US$61.3-million a year ago. The results missed estimates of US$61.9-million. Its net loss was US$3-million or 7 cents US per share, compared to a loss of US$700,000 or 2 cents US per share a year ago. Adjusted EBITDA decreased 10.4 per cent to US$13.4-million and was below estimates of US$14.2-million. Canaccord Genuity analyst Richard Close lowered his rating to 'hold' from 'buy' and cut his target to $1.70 from $4 after the earnings release. 'Quipt is currently enduring several revenue headwinds that have stunted organic growth over the last year,' he wrote, adding that the headwinds are continuing longer than expected. 'Specifically, the loss of Humana HMO [health maintenance organization] clients with the initial transition to capitated agreements with competitors looks to have increasingly bled over to PPO [preferred provider organization] members as the capitated contract was again cited in the revenue performance. Given the challenges currently with revenue growth and that the strategies to re-accelerate may take several quarters to begin to deliver results, we have less conviction in a return to previous organic growth targets this fiscal year.' In the past 52 weeks, the stock has traded between a high of $5.60 and a low of $2.03 on the Toronto Stock Exchange. ** DRI Healthcare Trust (DHT-UN-T) reported higher revenue and trimmed its loss for the first quarter ended March 31. After markets closed on Monday, the trust reported revenue of $44-million, up from $42-million a year earlier. Its net loss was $1.7-million or 43 cents per share versus a loss of $6.5-million or 47 cents a year ago. Canaccord Genuity analyst Tania Armstrong-Whitworth said revenue was in line with her estimate of $44.2-million but below consensus of $46.1-million. 'A miss on Orserdu and Omidria royalty income was offset by higher-than-expected income across most other entitlements, and a licensing fee of $5-million related to Casgevy,' she wrote in a note, referring to some of the company's brands. She has a 'buy' and $20.50 price target on the stock. As of March 31, the trust said its portfolio included 28 royalty streams on 21 products that address a variety of therapeutic areas, such as oncology, neurology, ophthalmology, endocrinology, hematology, dermatology, lysosomal storage disorders and immunology. The trust also announced agreements to terminate the existing management agreement with DRI Capital and allow DHT to internalize the investment management function. CEO and chairman Gary Collins described it as an 'evolutionary step forward' that will align interests and transparency for stakeholders and generate value for unitholders. 'We have a robust pipeline backed by a portfolio that continues to increase and produce significant returns. At the same time, we will opportunistically allocate capital towards unit buybacks via our renewed normal course issuer bid to ensure accretive value generation on a per unit basis,' he stated. The company will pay $49-million in cash to end the management agreement and all management and performance fee obligations, and to acquire all the relevant assets of DRI Capital. Ms. Armstrong-Whitworth said in her note that the transaction will deliver $200-million in cumulative savings over 10 years, based on DRI Capital's projections of future management and performance fees. In a note, National Bank Financial analyst Zachary Evershed described the 'swift conclusion to negotiations' as 'favourable.' He increased his target to $18.50 from $18 after the earnings and the announcement about the management agreement changes. 'With confidence in the trust's growth prospects and internalization heralding a new era, we reiterate our outperform rating and DHT as one of our top three picks for 2025,' he wrote. In the past 52 weeks, the units have traded between a high of $16.31 and a low of $10.42. ** Dentalcorp Holdings Ltd. (DNTL-T) reported higher revenue for its first quarter ended March 31 that beat expectations but missed earnings estimates. Before markets opened on Monday, the dental practice company reported revenue of $409.4-million compared to $372.4-million a year ago. The expectation was for $404.6-million. Its loss was $10.2-million compared to a loss of $11.7-million a year ago. Adjusted earnings came in at 10 cents, which were below the consensus of 14 cents and below National Bank Financial's estimate of 12 cents. 'The delta to our estimate was driven primarily by a small recorded tax expense rather than an expected minor recovery,' stated analyst Zachary Evershed in a May 12 note. He has an 'outperform' (buy) and $15 target on the stock. CIBC analyst Scott Fletcher, who has an 'outperformer' (buy) and $13 target, described the quarter as 'clean' and 'in line.' 'We've long appreciated DNTL for its resilient, recession-resistant growth model, and with the Canadian Dental Care Plan (CDCP) set to shift from an uncertain headwind to a modest tailwind in the second half of the year, we see a path to improved valuation that supports the stability,' he wrote. 'Further, DNTL has been a disciplined acquiror, funding the last six quarters of M&A out of FCF [free cash flow], reducing leverage while still growing at near double-digit rates.' BMO Capital Markets analyst Stephen MacLeod maintained his 'outperform' (buy) and $12 target price after the earnings release. 'We view dentalcorp as a unique Canadian growth stock with a multi-year opportunity to continue to grow its market-leading network of dental clinics. The successful execution of dentalcorp's acquisition and organic growth strategy could lead to double-digit revenue and EBITDA growth,' he wrote in a note. In the past 52 weeks, the stock has traded between a high of $10.50 and a low of $6.16. ** Dorel Industries Inc. (DII-B-T) reported a drop in revenues and a wider loss for its first quarter ended March 31. Before markets opened on Monday, the home and juvenile products maker reported revenue of US$320.5-million, down 8.7 per cent from US$351.1-million a year ago. The result was below expectations of $347.8-million. Its net loss for the quarter was US$25.3-million or 77 cents US per share compared to US$17.6-million or 54 cents per share a year ago. Its adjusted net loss was US$23.6-million or 72 cents US per share compared to US$16.9-million or 52 cents a year ago. BMO Capital Markets analyst Stephen MacLeod lowered his target price to $2.25 from $4.50 after the earnings release and maintained his 'market perform' (hold) rating. 'While Juvenile sales improved (organic up 4 per cent year over year), the Home segment remains under pressure (down 24.4 per cent). Management announced another Home restructuring, to be implemented through Q2 [the second quarter]; and citing low visibility did not give segment-level guidance,' he wrote. 'Both businesses experienced lower order levels in Q2 as a result of tariffs (particularly Home), which is expected to weigh on near-term results.' The analysts said the 90-day US-China tariff reprieve (to 30 per cent from 145 per cent) should provide some relief for the stock, 'but earnings visibility remains low.' In the past 52 weeks, the stock has traded between a high of $7.69 and a low of $1.25. ** Organigram Global Inc. (OGI-T) reported a 74-per-cent increase in revenue for its second quarter ended March 31. Before markets opened on Monday, the cannabis company said its net revenue increased to $65.6-million from $37.6 million in the same prior-year period. The result was ahead of expectations of $65.6-million. Net income was $42.5-million compared to a net loss of $27.1-million a year ago. In the past 52 weeks, the stock has traded between a high of $2.87 and a low of $1.22. ** Pan American Silver Corp. (PAAS-T) has reached a friendly arrangement to buy its Canadian competitor MAG Silver Corp. (MAG-T) in a US$2.1-billion stock-and-cash deal that has not gone down well with shareholders. Vancouver-based MAG's sole producing asset is its 44-per-cent share in the Juanicipio silver mine, which is located in Mexico, and majority-owned and operated by Britain-incorporated Fresnillo PLC. Founded by financier Ross Beaty, Pan American is one of the biggest silver producers on the planet with a portfolio of 10 mines in seven countries. The Vancouver-based company expanded its footprint considerably a few years ago when it bought a suite of South American mines from Canada's Yamana Gold Inc. For each share held, MAG investors can choose to receive US$20.54 in cash, 0.755 common shares of Pan American, or a combination of both. The maximum amount of cash that Pan American will pay out is US$500-million with the balance to be paid in stock. Read the full story from the Globe's mining reporter Niall McGee here ** May 21: Velan Inc. (VLN-T) May 22: Lightspeed Commerce Inc. (LSPD-T), Silvercorp Inc. (SVM-T) May 23: Sucro Ltd. (SUGR-X) May 28: EQB Inc. (EQB-T) May 30: Laurentian Bank (LB-T) June 4: Transcontinental Inc. (TCL-A-T) June 10: Stingray Group Inc. (RAY-A-B)
