Acumen Capital 2018 Top Picks Inside the Market's roundup of some of today's key analyst actions
The stage is being set for continued strength in the markets, according to Acumen Capital analyst Brian Pow, citing the fact that macro indicators suggest the world's economies "are doing well" and supported by "reasonable underlying corportate fundamentals."
"We believe this is encouraging for our small cap universe," said Mr. Pow.
"We expect corporate earnings reports in the coming months will support further upward revisions to estimates and target prices. While we expect reasonable performance in 2018, we are tempering our expectations for returns this year. As we build the list, we are focused on (1) higher quality names that performed reasonably well in 2017, and (2) showcasing a few names that have been transitioning their businesses, with expectations that 2018 performance will reflect the benefits of these initiatives. Our focus is on fundamentals, potential catalysts, and valuations."
In a research report released Wednesday, Mr. Pow released Acumen's list of 2018 top investment ideas, which consists six TSX-list stocks.
People Corp. (PEO-X) with a "buy" rating and $8.75 target (unchanged), which is also the consensus target.
"PEO had a successful 2017 and carries strong momentum into 2018," said Mr. Pow. "Management has a comprehensive game plan to grow the business and increase its market share through acquisitions and organic growth. We believe that the company will have another active year for acquisitions, providing numerous catalysts for the shares."