Profit taking time....start...Renaissance Capital noted that Tim Hortons operates in a "fiercely competitive" market. It's dependent on a 50/50 joint venture for all its doughnuts and other bread, and its U.S. restaurants have been struggling.
The fat IPO purse will go to corporate parent Wendy's and not to the Tim Hortons business, the fund manager also said.
"Based on its track record, savvy management team and significant opportunities for restaurant expansion in Canada and the U.S., along with strong momentum behind the publicly traded restaurant group and its appealing valuation, we believe there will be significant appetite for Tim Hortons' IPO," Renaissance Capital said.
Also of note, CNBC personality Jim Cramer opened his latest show by recommending that Tim Hortons shares be bought at up to $24 a share and then selling them after seeing a reasonable profit.