Ignore the previous post and here's the correct one. GLTA
RBC Dominion Securities analyst Geoffrey Kwan maintained a defensive stance toward Canadian diversified financial companies ahead of the start of third-quarter earnings season, believing caution is “prudent in the short-term pending further data to help assess both economic trends and when to shift to best ideas with more offence.”
“In our January 3, 2022 Outlook report, we looked at share price performance over the past 25 years when the market was down more than 10 per cent (8 instances) and the subsequent rally,” he said. “Unsurprisingly, defensive stocks performed the best during downturns (IFC, X, but we think EFN and DFY are also defensive). During market rallies, small caps in our coverage typically outperformed and by sector, specialty finance (EFN, ECN, CHW), mortgages (HCG, EQB) and private equity (ONEX) typically outperformed.”
In a research note released Monday titled Tell me buys, tell me sweet Little Buys. Mr. Kwan raised his target for Intact Financial Corp., his “No. 2 best idea,” to $221 from $219, above the $215.43 average with an “outperform” rating.