Industrial Alliance 2021 Top Picks Equity analysts at Industrial Alliance Securities unveiled their “Top Picks” for 2021 in a research note released Wednesday.
The list of 18 Canadian equities were chosen from the 124 names in the firm’s coverage universe and are meant to be the best ideas by sector.
While the research firm didn’t provide performance data on its 2020 top picks, it highlighted some accomplishments by its equity team last year: “Despite the struggles of the last year, iA’s Research Group did enjoy a few bright spots,” said Head of Research Niel Linsdell. “The team continued to be recognized for its stock picks and analysis. In the Canadian StarMine Analyst Awards, Elias Foscolos was ranked the #1 Stock Picker in the Oil, Gas & Consumable Fuels segment, as well as the #2 Top Stock Picker in Energy Equipment & Services. This is Elias’ third consecutive year in being recognized by StarMine. In September, we welcomed Frederic Blondeau to our Research Team. Fred was also recognized by Starmine in 2020 as the #1 Stock Picker in Equity Real Estate Investment Trusts (REITs).”
The firm’s selections are:
Oil and Gas Services and Energy Infrastructure, Utilities and Midstream
TC Energy Corp. ( “strong buy” rating and $70 target)
Analyst Elias Foscolos: “Since the onset of COVID-19, TRP’s outlook has essentially not changed. The Company provides investors with stable cash flows, largely underpinned by regulated or long-term contracts, which have enabled the delivery of near-record financial results to date in 2020. At TRP’s 2020 Investor Day held in November, the Company highlighted its growth guidance, projecting DPS growth of 8-10 per cent in 2021 followed by 5-7 per cent per year thereafter, supported by growth in earnings and cash flow. Near-term growth is under pinned by $37-billion in secured capital projects through 2023. In our view, TRP’s Keystone XL pipeline project, which faces an uncertain future amidst the changing political climate in the US, is now likely priced out of market expectations, leaving investors with upside potential. It is also priced out of our outlook. As such, we believe TRP currently offers compelling risk-adjusted upside, and long term, we believe natural gas transmission & distribution infrastructure is a relatively well-positioned asset class in the changing energy landscape in terms of growth and ESG risk.”