Posted ago 51 minutes
CIBC analyst Kevin Chiang remains very cautious about the idea of investing in Transat shares. (Photo: 123RF)
What to do with the titles of Savaria, Transat and Roots? 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.
Savaria (SIS, $ 22.21): strong potential at Handicare, according to Desjardins analyst
In March, the Quebec mobility equipment supplier Savaria acquired the European company Handicare Group AB, and the benefits it will derive from it will be enormous, according to Frederik Tremblay, analyst at Desjardins.
His survey of home mobility retailers in the United States and Canada leads him to believe that Savaria’s decision to establish production capacity in North America in a very short period of time will be a game-changer. with regard to the increase in Handicare’s market share.
The lack of enthusiasm among manufacturers that his survey reveals leads him to believe that a large portion of the market valued at around US $ 300 million is just waiting to be conquered. And now that it is in the hands of Savaria, Handicare is in a very good position to accelerate its penetration in North America.
His survey of retailers reveals that they appreciate, among other things, the quality, reliability and special features of Handicare’s products. Consequently, the analyst is pleased with Savaria’s decision to start production in Ontario by the end of the year of Handicare’s single-rail curved elevators. In addition to saving money and satisfying the preference of retailers for proximity, this initiative will reduce delivery times to one week for Handicare’s products compared to 4 to 6 weeks for its competitors, estimates the analyst.
He believes Handicare is in a good position to achieve above-average growth in North America through the quality of its products, local production capacity, reduced lead times, in addition to being able to use the reputation well established of Savaria. And the sales growth will translate into a significant increase in profits, according to the analyst.
He reiterates his buy recommendation, and his target price is $ 25.50.
Transat (TRZ, $ 4.74): too many worrying factors, according to CIBC analyst
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