
TSE:FTT
This summary was created by AI, based on 4 opinions in the last 12 months.
Finning International (FTT-T) has garnered mixed reviews from experts, highlighting both its strengths and concerns in the current market landscape. The company is recognized as a distributor of Caterpillar products, making it a stable stock choice with potential as a HALO company. However, uncertainty in Canada surrounding infrastructure and energy has raised some red flags. While some analysts note the stock's remarkable ascent from $45 to current levels, they caution that it has surpassed its fair market value, suggesting careful monitoring is needed, especially if the stock fails to maintain support at $78. Despite the trend of earnings forecasts appearing flat, the equipment industry is generally seen as resilient to inflation, and there is optimism for growth driven by mining and global expansion over the next few years, particularly in industrials.
Our version of Caterpillar. If global growth continues to slow, the environment for Finning will be difficult. They have a 6-9-month window now. If Trump wins in 2020, he would take pot shots at China which will lead to a global recession that will really fit Finning. If this pops in the coming months, sell it.
(A Top Pick May 16/18, Down 26%) Disappointing, because of overblown fears of a recession that he doesn't expect. This is very cyclical demand for Caterpillar equipment. They reported earnings today and they were in line with subdued expectations. Sales were better than expected and they have partially solved a distribution problem in South America.