Industrial Alliance top pickIndustrial Alliance Securities analyst Neil Linsdell said he’s favouring “underappreciated” names this year, selecting four stocks as his top picks for the year in a research report released Friday.
Intertape Polymer Group Inc. (ITP-T) with a “buy” rating and $26 target. Average: $22.75.
“As the second largest tape manufacturer in North America, the market seems to be ignoring the Company’s strong organic growth profile and profitability improvements,” he said. “Also, this stock has been generally overlooked and penalized over several years after its operations were disrupted by floods in South Carolina from a hurricane in 2015. Lost sales and inefficiencies as it moved to new facilities impacted results, but over the last couple of years, ITP has posted solid revenue growth and has invested in automation and low-cost manufacturing facilities to support profitability improvements while also completing seven acquisitions, which are all going to start paying off in 2019, resulting in margin expansion.
FYI, his other three top picks for 2019 are: Aecon ARE, GDI Integrated Facility Services GDI and Enwave ENW.