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:
Real Estate and REITs
Canadian Apartment Properties REIT “buy” rating and $59.50 target)
Calling it the “ultimate ‘low operating vol’ pick,” analyst Frederic Blondeau said: “Management mentioned seeing greater amounts of potential acquisitions both in Canada and the Netherlands. Post-Q3/20 financial results announcement, management indicated that the REIT had closed on acquisitions located in Ottawa ($96-million), Vancouver ($29-million), and Halifax ($12-million). That said, the REIT continues to focus on risk management in the current environment, notably in regards to its development pipeline. In the meantime, the portfolio continues to perform exceptionally well. More specifically, overall SS-AMR [comparable average monthly rent) increased 3.3 per cent year-over-year in Q3, while Total Operating Revenues increased 2.8 per cent. Total Operating Expenses increased 0.5 per cent , resulting in an overall SS-NOI increase of 4.0 per cent.”