What to do with the titles of Cominar, Softchoice Corporation and Lion Électrique? Here are some recommendations from analysts likely to move prices in the near future. Note: the author may have a totally different opinion from that expressed.
Cominar (CUF.UN, $ 11.35): the start of a “long process of rehabilitation”
After an 18-month period in which real estate investment trust Cominar faced enormous challenges, the company is entering a “long period of recovery,” said analyst Pammi Bir of RBC Capital Markets.
“Organic growth rebounded well in the second quarter, particularly in retail, which faces many challenges. The conclusion of the strategic review expected in the coming weeks or months could shed light on possible value creation initiatives, ”said the analyst.
During the quarter, Cominar reported a 13.1% year-over-year increase in revenues in industrial real estate and 54.4% in commercial real estate. During the second quarter of 2020, the company’s activities were severely affected by the pandemic and by the closure of businesses deemed non-essential.
“Despite everything, our optimism is tempered by Cominar’s exposure to shopping centers, where we believe ‘structural pressures’ will persist,” explains Pammi Bir.
The latter adds that the company continues to face certain difficulties on the side of office buildings, whose revenues declined 4% in one year in the second quarter.
For the period ended June 30, Cominar reported a net loss of $ 91.4 million ($ M), which was $ 318.1 million for the corresponding period in 2020. Overall, the company disclosed a physical occupancy rate of 91% at the end of the quarter, down 0.7 percentage point compared to the end of the 2020 fiscal year.
Mr. Bir thus prefers to stay on the sidelines and does not touch his recommendation of “performance equal to the sector”, but raises his target price over one year by $ 1 to 12 dollars.