
TSE:FTT
This summary was created by AI, based on 5 opinions in the last 12 months.
Finning International, recognized as the largest Caterpillar dealer, has seen a solid performance with its stock price moving from $45 to higher levels. However, concerns have arisen as it currently trades at a high valuation amidst cyclical uncertainties in the market, particularly with infrastructure and energy in Canada. While some experts remain bullish on industrials, citing a favorable environment in phase 2 of the business cycle, there are warnings that the stock may be approaching its fair market value, and a correction could be imminent if it doesn't hold above $78. The prevailing sentiment indicates that while the company is poised for potential growth in a favorable economic period, a cautious approach is advised, suggesting buying at lower levels. Overall, the sentiment around Finning International is mixed, with an inclination towards a cautious outlook rather than aggressive investment at current rates.
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.