H2O Innovation Ord Shs V.HEO

From G&M - Desjardins Securities

[morzine]

In a research report released Wednesday, Gary Ho and Frederic Tremblay named three stocks as their top picks for the next year. Among them:

H2O Innovation Inc. (HEO) with a “buy” rating and $3.50 target. The average is $3.34.

“HEO is our other preferred name based on (1) the excellent organic growth outlook supported by a record backlog and a tidal wave of opportunities, which HEO can continue to capture via product innovation, synergies across the various business units and expansion of the distribution/sales network; (2) the business resilience stemming from the essential nature of water/wastewater treatment, secular sector tailwinds and HEO’s large base of recurring revenue; (3) the targeted improvements in cash flow generation through working capital management and margin expansion; and (4) a mouth-watering valuation,” they said.