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Desjardins’ best ideas for 2023

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Seven of the twenty-two best investment ideas proposed by Desjardins Securities for 2023 are Quebec securities.

With a possible recession at the turn of the year, the selection of securities – “stock picking”, as the English say in financial jargon – will be of great importance to face in the months to come the volatility anticipated by the experts. of Desjardins.

The second half of the year could be more favorable to the stock market than the first half, and to help investors position themselves, Desjardins published on Tuesday its list of Canadian securities offering the best return potential. Here are the seven Quebec titles on this list.

Food Couche-Tard

Desjardins considers “reasonable” the evaluation of the title of the Laval convenience store chain. The target is $72 within 12 months. The firm particularly appreciates the in-store product offering and the stock’s positioning within the consumer staples sector in the current macroeconomic environment.

H2O Innovation


PHOTO PROVIDED BY H2O INNOVATION

The attractive valuation of the stock of H20 Innovation and the recurrence of income are other elements raised to justify the purchase of the stock.

The backlog gives reason to be optimistic about the prospects for organic growth for the Quebec water treatment technology company, and Desjardins adds that the opportunities are numerous and within the company’s reach. The attractive valuation of the title and the recurrence of income are other elements raised to justify the purchase of the title.

TFI

The possibilities for value creation are multiple and independent of market conditions in the investment thesis developed around the title of the Montreal trucking company. Desjardins estimates that the stock could be worth $205 if certain performance measures are achieved. The title could even be worth $245, it is specified, if a transformative acquisition is made. The title is worth around $140 right now.

WSP

The discipline of the management team in its search for acquisition targets, the ability to seize opportunities that may emerge in a recession, and opportunities for organic growth in certain sub-sectors (environment, for example) are factors that play in favor of the Montreal engineering firm.

Bomber


PHOTO DAVID BOILY, LA PRESSE ARCHIVES

Desjardins sees the stock surpassing the $150 mark in the long term.

The possibilities of improving margins and increasing revenues (increased production, defense sector, etc.) for the Montreal business jet manufacturer are interesting, according to Desjardins. These elements should help to improve the financial situation, which should support the title. Desjardins sees the stock surpassing the $150 mark in the long term.

Boralex

The Montreal renewable energy producer is “very well positioned” to make acquisitions and potentially exceed analysts’ expectations. Desjardins says Boralex is the stock to own in the renewable energy sector.

Quebecor

The title of the parent company of Videotron is a great opportunity to invest in the telecommunications sector in anticipation of the expected closing of the merger of Rogers and Shaw, according to Desjardins. The agreement by which Quebecor would carry out the purchase of Freedom (the wireless subsidiary of Shaw) greatly reduces the risk associated with the national ambitions of the conglomerate headed by Pierre Karl Péladeau.



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