top pick from Echelon Calian Group (Calian Group Stock Quote, Charts, News, Analysts, Financials TSX:CGY)
- Echelon rating: Buy
- Target price: $85.00
- Projected one-year return: 40.0 per cent
Calian Group is headquartered in Ottawa and provide business and tech services in health, IT, learning and advanced technologies. The stock has tripled over the last three years but Echelon analyst Amr Ezzat sees more upside based on Calian’s solid track record of value creation through acquisition and innovation, saying CGY “has all the bells and whistles an investor would seek out in a quality company.” Ezzat said the Street has consistently underestimated Calian by failing to recognize the accretion potential of M&A on both Calian’s earnings and valuation.
“We continue to see the recent share price weakness (down ~ten per cent from its 52-week high) as an opportunity to consolidate a position in a quality operator with a solid track record of value creation. Calian’s FQ421 results showcase continued strong earnings momentum and stellar free cash flow,” Ezzat wrote in a January 4 report.