2023-10-06 19:51:10
BlackBerry will split into two by the first half of 2025. (Photo: 123RF)
What to do with the titles of Taiga Motors, Suncor and BlackBerry? Here are some analyst recommendations likely to move prices soon. Note: the author may have a completely different opinion than that expressed by the analysts.
Taiga Motors Corporation (TAIG, $1.21): liquidity to support production
The conclusion of an agreement between Taiga Motors and Export Development Canada will allow the manufacturer of off-road electric vehicles to continue its growth, estimates National Bank Financial Markets.
Taiga Motors announced that it had reached an agreement with the Canadian government for a guaranteed term loan of $15 million. The sum should allow it to increase its production by 1,000 vehicles in 2023, says the company’s management.
Analyst Cameron Doerksen indicates that Taiga did indeed need additional liquidity to support an increase in production in 2023, and therefore views the announcement positively. However, he adds that the company will have to find additional financing over the next two years in order to achieve its long-term production objectives.
Management and the National Bank reveal that the term loan bears interest on the funds advanced at an annual rate equal to the current Canadian prime rate plus 5% and authorizes several advances over a nine-month disbursement period, the first having been made today, October 4, 2023. The loan will mature on February 10, 2028.
In addition to the financing announcement, the company further revised its production targets downward. It now expects to produce 1,000 vehicles, while the last forecast was for 1,700, and the first estimate for 2023 varied between 2,500 and 3,500 vehicles.
Cameron Doerksen recalls, however, that Taiga has made progress (178 units in the second quarter, 365 in the third), but the update of the forecasts still remains a fairly significant decrease which places it well below the National Bank’s estimate. (1354 units). Despite this, the company continues to be the leading original manufacturer of electric recreational vehicles in the market.
The National Bank maintains its performance forecast for Taiga’s stock in relation to its sector of activity as well as its target price of $2.25.
Suncor Energies (SU, $43.78): acquisition with a very attractive value
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