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:
Whitecap Resources Inc. (Buy rating and $5.50 target)
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Mr. Charlton: “Whitecap was hammered hard last year on the back of falling oil prices and its 84-per-cent liquids weighting, but with financial discipline and operational strength, the Company has been able to capitalize on opportunities. WCP has made two significant acquisitions that look to move the Company into large cap territory at $4-billion enterprise value and over 100,000 boe/d of light oil-weighted production (78 per cent), with a view to generating sustainable long-term value for shareholders.”
“At the present time, and factoring in the acquisitions, we believe that the Company is better positioned to survive any future downturn with a strong balance sheet that looks to exit the year with 1.8 times net debt/cash flow. Without risk, there can be no reward, and we believe the dividend approaching 3.4-per-cent yield is a fairly good reward in the interim as the Company maintains tremendous torque to the upside with higher crude prices ... .”