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TSE:FTT
This summary was created by AI, based on 5 opinions in the last 12 months.
Finning International (FTT-T) has garnered mixed reviews from experts regarding its current valuation and performance outlook. As the largest Caterpillar dealer, it has seen a significant price movement, particularly reaching heights of $78. However, some analysts express skepticism about the stock's future, suggesting that it has outstripped its fair market value. The cyclical nature of the business adds to the uncertainty, especially amidst concerns about infrastructure and energy developments in Canada. Despite the stabilization and growth potential in equipment dealerships, many experts recommend waiting for a better entry point. Overall, while the market may be in a phase that supports industrials, the high valuation poses risks for investors at this stage.
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.