Restaurant Brands experts will leverage their marketing strategy, product innovation, digital and technology, and restaurant development to generate long-term growth for the Tim Hortons banner, which would be between 2% and 3%. (Photo: 123RF)
What to do with the Lion Electric, Restaurant Brands and IAMGOLD titles? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that expressed.
Electric Lion (LEV, $6.21): Deliveries are on the way
Desjardins says it is satisfied with the pace of deliveries made by Lion Electric in its first quarter of 2022, despite widespread supply chain issues.
Analyst Benoit Poirier points out, however, that the results for the first quarter were mixed. While revenues improved (US$22.6 million, or US$6.2 million more than the previous year) and beat its forecast (US$19 million), earnings before interest, taxes, depreciation and amortization (EBITDA) was -US$11.3 million, which is higher than the market consensus of -US$7.8 million. The difference is mainly in the fact that Lion Electric increased its number of employees, going from 1000 to 1100 in a single quarter.
Desjardins recalls that the company’s management expects the production rate and deliveries to continue to increase until the end of 2022.
Lion Electric delivered 84 vehicles (72 school buses and 12 trucks) in the first quarter, 12 more than Desjardins had forecast. The order book also remains well stocked, with 2,422 units (2,136 buses, 286 trucks) as of May 3. This is more than what it had on February 24 (2325 units), but less than the forecast of the financial institution (2653 units).
Revenues from the order book amount to around US$600 million, while that of Lion Énergie (which supplies the charging stations in particular) is around US$3 million. Several partnerships with truck builders (Morgan Body Truck, Thermo King, Knapheide and CM Truck Beds) were also announced in March.
Desjardins is waiting for the conference with investors to learn more regarding the progression of production in 2022, the marketing of trucks and buses as well as the company’s key strategies.
The financial institution maintains its buy recommendation, and its target price is US$18.
