Stock price when the opinion was issued
Recent all time high in share price. Owns shares and will continue to own. Capital light business that is able to generate strong profits. Well executed investor day recently. Has a diverse offering of trading platforms. Would recommend holding for the long term investor. A majority of revenues are recurring which is excellent for profits.
Great company, especially in the context of Canada. He has a few questions about its capital allocation as it's moving into the US, goals seem a little ambitious. Quality firm, generates a lot of cash. Don't chase; valuation is mean reverting.
Keep it on your watchlist. Pick away as the valuation comes down.
We continue to like TMX group. They should continue to benefit in an uptrending market and from a valuation persepctive, given the stability and steady growth, we don't view the 23X P/E as particularly 'challenging'. If a bit more deal activity comes back in the New Year, TMX should see an extra tailwind as well. For entry price, we think something in the range of low to mid-40's here makes sense.
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Stock exchange plus sells data. Good businesses. Fewer IPOs contributed to a slump, but next year will be better. Will grow its data offerings through AI. Good investment over the long term. Not a bad place to buy here.