
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.
This is a bet on an improving economy even with reduced revenue growth. Still have very strong margins expanding between 9%-10% between now and 2013. Trading at around 6.2X EV to EBITDA compared to their peers at around 8X. This stock has pretty much moved lockstep with copper so if you think China is going to come back a little bit and that US is getting more constructive and that copper is going to do a little bit better, this will probably follow as well.
Good business and all of the markets they operate in are performing well and have growth opportunities. Bug Finning has had a number of challenges and it has nothing to do with CAT equipment, but more to do with their operations. Revenues are growing and backlog is up 6% so it is doing well but investors are focusing on the cost line. If they can get them under control then investors will reward them with north of $30 for the stock price. Prefers to Caterpillar.
(A Top Pick Jan 4/12. Up 14.23%.) Hit his target price so he sold out in April. Stock dropped back and he re-bought in the $22 range. This is a very good stock if you are disciplined as it trades low $20s up to the high $20s and sometimes into the $30’s.