BMO Capital analyst Stephen Macleod has maintained their neutral stance on AIF stock, giving a Hold rating on November 8.
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Stephen Macleod has given his Hold rating due to a combination of factors related to Altus Group’s strategic plans and current performance. The company’s recent Investor Day revealed a new value creation plan, which includes divesting certain non-core segments to focus on becoming a pure-play CRE data and analytics platform. While this strategic shift is promising, the growth in the Analytics segment has not met expectations so far this year, and future stock price improvements will depend on accelerating this growth.
Furthermore, the plan to streamline operations around core businesses like ARGUS and Valuation Management Solutions is seen as a positive move. However, the divestiture of Appraisals & Development Advisory, although expected to enhance growth, introduces some uncertainty. The company’s new capital allocation framework, including share buybacks and a planned U.S. dual-listing, suggests a potential return to shareholders. Despite these strategic initiatives, the balanced risk-reward profile of the stock supports the Hold rating, as the anticipated benefits are contingent on successful execution and market recovery.
Macleod covers the Consumer Cyclical sector, focusing on stocks such as Aritzia, Leon’s Furniture, and Gildan Activewear. According to TipRanks, Macleod has an average return of 17.1% and a 62.53% success rate on recommended stocks.
In another report released on November 8, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a C$49.00 price target.