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Finning International Inc. (FINGF)

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28.04+0.32 (+1.15%)
As of 09:47AM EST. Market open.
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  • K
    Karen
    In the Globe and Mail today!
    * Raymond James analyst Bryan Fast raised his Finning International Inc. (FTT-T +3.35%increase
    ) target to $43 from $40, exceeding the $42 average, with an “outperform” rating.

    “We continue to point to the valuation disconnect between Finning and peer Toromont as support for our positive view on the name,” said Mr. Fast. “On a relative basis, Finning’s stock is now trading at a 8.6-times point discount to Toromont, vs. the historical average at 3.6 times. “Though we remind investors it is a mistake not to own Toromont’s shares because of an expensive relative valuation, the premium is still well above long-term levels. In what we view as a conducive environment for Finning (key commodity price strength, reopening of economies, healthy backlog) we see further potential upside, particularly as the company realizes the benefits from an improving macro backdrop and operational leverage after improvements in the business in recent years.”
  • K
    Karen
    More coverage in the Globe and Mail today!
    * Scotia Capital analyst Michael Doumet increased his target for Finning International Inc. (FTT-T +0.26%increase
    ) to $44 from $42 with a “sector outperform” rating, while National Bank Financial’s Maxim Sytchev raised his target to $45 from $44 with an “outperform” rating. The average is $43.11.
  • K
    Karen
    Top Pick on Bloomberg Market Call today.
    David Burrows.
    Finning International (FTT TSX)

    Finning’s international franchise selling Caterpillar equipment into mining, construction, forest and agriculture sectors make it an attractive way for investors to participate in a reflationary upturn in the commodity cycle as well as an active infrastructure business cycle. While Canada is 55 per cent of revenues, the UK and South America offer interesting opportunities.

    Recurring revenue from service at 55 per cent helps insulate Finning from being overly cyclical but new equipment sales gives leverage to economic acceleration.
  • J
    Jerry
    Anyone know the reason for the drop today? Haven't found any news yet.
  • A
    Antonio
    It’s quite interesting to me how the share price has remained more or less in tact over the past month while the rest of the market is falling into shambles. I suppose the prospects for construction irrespective of the current COVID resurgence are high.
  • h
    hadi
    To buy or not to buy?
  • Y
    Yahoo Finance Insights
    FTT.TO is up 4.96% to 39.80
  • K
    Karen
    In the Globe and Mail today!
    Following its first Investor Day event in three years, Canaccord Genuity analyst Yuri Lynk sees Finning International Inc. (FTT-T +1.88%increase
    ) “well positioned to move on acquisitions, continue to increase the dividend (building on 19 years of consecutive growth), and buyback stock.”

    On Monday, the Vancouver-based company said “robust” execution through 2020 has put it back on track to achieve its 2018 investor day objectives. It’s projecting mid-cycle annual net revenue to be in the $7.1- to $7.5-billion range between the third quarter of 2021 and the second quarter of 2022 and expects to achieve earnings per share in excess of $2.00 per share and consolidated return on invested capital above 15 per cent.

    “We found management’s plan to increase revenue to $7.3-billion at the midpoint from $5.8-billion on a trailing 12 months’ basis credible,” said Mr. Lynk.

    He added: “Finning’s digital initiatives represent interesting upside. The company introduced CUBIQ, a new name and brand for Finning’s digital services. The CUBIQ platform provides clients with services such as condition monitoring, parts ordering, and productivity analysis among others. The cost for a client with more than 100 assets is $3-million with a margin comparable to product support. We peg the addressable market for CUBIQ at $600-million based on Finning having more than 200 customers globally with more than100 assets.”

    Mr. Lynk increased 2021 EPS estimate by 12 per cent to $1.94 (from $1.73) and his 2022 forecast by 20 per cent to $2.34 (from $1.95.)

    That led him to raise his target for Finning shares to $42 from $37 with a “buy” rating. The average is $40.17.

    Other analysts making changes include:

    * BMO Nesbitt Burns’ Devin Dodge to $35 from $34 with a “market perform” rating.

    “Finning’s Investor Day presentations highlighted the progress the company is making on many of its key initiatives such as product support growth, expanding/growing its digital services offering, and streamlining its cost structure,” said Mr. Dodge. “Moreover, the demand recovery is tracking ahead of prior projections, with FTT expecting to reach mid-cycle demand over the next 12 months. However, we believe the prevailing uncertainty in Chile will remain an overhang until there is better visibility into the political landscape and the climate for foreign investment.”

    * CIBC’s Jacob Bout to $44 from $41 with an “outperformer” rating.

    “Coupled with a positive macro backdrop (better outlook for infrastructure/commodity end-markets), FTT provided better-than-expected mid-cycle guidance (our 2021 and 2022 adj. EPS estimates rise by 6 per cent and 13 per cent, respectively),” said Mr. Bout. “The one wildcard is political/regulatory issues potentially impacting longer-term Chile copper mine production.

    * RBC Dominion Securities’ Sabahat Khan to $41 from $39 with an “outperform” rating.

    “The outlook and the growth strategies highlighted by management reaffirm our positive view, and we believe the company is well positioned to capitalize on the growth opportunities available across its three regions,” he said.

    * Scotia’s Michael Doumet to $40 from $38 with a “sector outperform” rating.

    “We thought the shares should have performed better following the release,” said Mr. Doumet. “For about 15 years, FTT shares have been range-bound. While the ‘trading psychology’ so far prevails, Finning’s outlook, which targets a record EPS of more than $2.00 over the next five quarters and further incremental EPS growth in a sustained upcycle, enhances the prospects of the shares hitting new highs in the near term.”
  • E
    Erik
    Any reason for massive the drop today?
  • D
    Del
    this business has the Canadian Federal Government paying its employees.
  • K
    Karen
    In the Globe and Mail today.
    * RBC analyst Sabahat Khan bumped up his Finning International Inc. (FTT-T -2.38%decrease
    ) target to $39 from $35 with an “outperform” rating, while CIBC’s Jacob Bout raised his target to $41 from $39 with an “outperformer” rating , Scotia Capital’s Michael Doumet increased his target to $38 from $34.50 with a “sector outperform” rating and National Bank Financial’s Maxim Sytchev moved his target to $44 from $43 with an “outperform” recommendation. The average is $38.83.
  • S
    Stelio
    WE BOOMIN
  • A
    Anshul
    I bought it for 34$ ... really confused ...
  • G
    GreenMarty
    No news, stock drops 6.5%?
  • J
    Jerry
    Ok, I found it, analyst downgrade - BMO Nesbitt. I was stupid to leave an open buy order on this since Friday and not check the news pre market this morning. I would have still bought it at $30 but ended up paying a bit more for it. Funny because I was looking at maybe buying Toromont as another option and he upgraded that one to outperform and that one is up 4.39 % . ha

    From Globe and Mail:
    "Conversely, seeing political uncertainty in Chile likely to “keep a lid” on its valuation, Mr. Dodge downgraded Finning International Inc. to “market perform” from “outperform” with a $34 target, down from $39 and below the average on the Street is $38.72."
  • G
    GreenMarty
    Gonna wait till after earnings on Aug 7th to see whether to get in.
  • M
    Matthew
    Decent time to get in?
  • A
    Ajoob
    Is this considered a cyclical business? I am asking because it appears to be so by the chart history
  • Y
    Yahoo Finance Insights
    FTT.TO reached a 52 Week high at 35.38
  • G
    GreenMarty
    Sooo the corona virus is affecting caterpillar equipment now?