Morguard Corporation (MRC-T)
TSE:MRC
112.96
0.04
(0.04%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
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This summary was created by AI, based on 7 opinions in the last 12 months.
Morguard Corporation (MRC-T) has a mixed outlook from analysts, emphasizing a significant discount between its net asset value (NAV) and current share price, which highlights no immediate catalysts for value improvement. The company's asset base primarily consists of retail and office spaces, sectors currently facing challenges. While some experts acknowledge the stock as relatively inexpensive based on earnings metrics, they also express concerns regarding its earnings potential and higher-than-average debt costs. The upside is viewed cautiously, with forecasts of modest growth and considerations for stop-loss strategies, though some analysts remain bullish on the company’s debt retirement efforts and cash reserves buildup.
Certainly at 5X earnings MRC can be considered cheap. Shares are very tightly held with 74% held by a connected group. The dividend is fairly low and shares have not done much, so it is not our favourite, as we do prefer more growth. But we would consider it OK. There is always a chance of a privatization but not something we would count on and would not buy just on that possibility. Net asset value requires lots of estimates and can be a moving target. The last comment from the company on a conference call indicated $340/share as NAV. Note this would be pre-tax.
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Our PAST TOP PICK with MRC has triggered its stop at $115. To remain disciplined, we recommend covering the position at this time. When combined with our previous guidance, this will result in a net investment gain of 5%
With inflation pressures beginning to ease and interest rates plateauing, we again reiterate MRC as a TOP PICK. Management sees resiliency in commercial and multi-family properties going forward. It trades at 6x earnings, under book and the company has built cash reserves, while aggressively retiring debt. We continue to recommend a stop at $103, looking to achieve $140 -- upside potential of 17%. Yield 0.5%
(Analysts’ price target is $140.00)We again reiterate MRC as a TOP PICK. The company has been selling some non-core assets, allowing for cash reserves to grow and for debt to be aggressively retired. The company still holds assets over $11 billion. It trades at 5x earnings and under book value. We recommend maintaining a tight stop at $103, looking to achieve $135 -- upside potential of 22%. Yield 0.5%
(Analysts’ price target is $135.00)We again reiterate MRC as a TOP PICK. The company feels inflation pressures are easing, which should help stimulate job growth and support rental demand in 2024. We like that cash reserves are growing while debt is aggressively retired and shares bought back. It trades under book value and at 16x earnings. We continue to recommend a stop at $103, looking to achieve $135 -- upside potential of 23%. Yield 0.5%
(Analysts’ price target is $135.00)We reiterate MRC, a leading North American real estate management company, as a TOP PICK. As the BoC holds interest rates from further increases, and rental rates are up over 10% across the country, we expect the company to continue reporting quarterly increases in cash reserves to allow for further retirement of debt and to buy back shares. It trades at 4x forward earnings. We continue to recommend a stop loss at $95, looking to achieve $125 -- upside over 18%. Yield 0.%%.
(Analysts’ price target is $145.00)The company owns a diversified portfolio of residential and commercial property portfolio worth $19 billion. It is benefitting from growth in immigration into Canada and sees the commercial sector stabilizing going forward. It trades below book value and at 10x earnings. We recommend a stop-loss at $95, looking to achieve $150 - upside potential of 40%. Yield 0.5%
Morguard Corporation(MRC-T) Rating
Ranking : 3 out of 5
Bullish - Buy Signals / Votes : 1
Neutral - Hold Signals / Votes : 1
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 3
Morguard Corporation(MRC-T) Frequently Asked Questions
What is Morguard Corporation stock symbol?
Morguard Corporation is a Canadian stock, trading under the symbol MRC-T on the Toronto Stock Exchange (MRC-CT). It is usually referred to as TSX:MRC or MRC-T
Is Morguard Corporation a buy or a sell?
In the last year, 3 stock analysts published opinions about MRC-T. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Morguard Corporation.
Is Morguard Corporation a good investment or a top pick?
Morguard Corporation was recommended as a Top Pick by on . Read the latest stock experts ratings for Morguard Corporation.
Why is Morguard Corporation stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Morguard Corporation worth watching?
3 stock analysts on Stockchase covered Morguard Corporation In the last year. It is a trending stock that is worth watching.
What is Morguard Corporation stock price?
On 2025-05-08, Morguard Corporation (MRC-T) stock closed at a price of $112.96.
NAV materially higher than share price. Doesn't see catalysts for NAV increasing, so discount will continue. Asset base is mainly retail and office, sectors that are somewhat out of favour. Earnings potential not great. Higher than average cost of debt.