Desjardins’ top stock picks for 2024: SISDesjardins’ top stock picks for 2024 in Diversified Industries https://www.cantechletter.com/2023/12/desjardins-top-stock-picks-for-2024-in-diversified-industries/# Savaria Corporation (Savaria Stock Quote, Chart, News, Analysts, Financials TSX:SIS) is Desjardins’ Top Pick in Diversified Industries.
“We expect 2024 to be a pivotal year for SIS,” they said. “It starts on January 1 with Sebastien Bourassa becoming president and CEO (from COO) and Marcel Bourassa moving to the executive chairman role (from president, CEO and chairman). We have long viewed Sebastien Bourassa as one of the key contributors to SIS’s evolution to a global leader in the accessibility industry and, in our opinion, 2024 is the right time for this logical CEO transition as the entire company becomes more intensely involved with the implementation of the Savaria One program in collaboration with consultants. While details on Savaria One initiatives are scarce at the moment, we believe that initial benefits in areas such as pricing, productivity and procurement should be progressively felt in 2024 and beyond. We look forward to SIS’s first-ever investor day in 1Q24 or 2Q24, which should be packed with information on Savaria One and key priorities/goals for each business segment.”
“SIS trades at a large discount to its average at 8.8x EV/EBITDA on 2024 estimates vs the average of 10.7x. Our C$20.50 target is based on 11x estimated 2024 adjusted EBITDA. Furthermore, we note that the stock trades at 7.8x our 2025 adjusted EBITDA forecast of C$168.4m (17.5% margin). If management’s 2025 goals of C$1b revenue and 20% margin are reached, the stock would be trading at an astonishing 6.6x,” the analysts added.