In a report released today, Devin Dodge from BMO Capital maintained a Buy rating on Finning International, with a price target of C$85.00.
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Devin Dodge’s rating is based on several compelling factors that suggest strong growth prospects for Finning International. The company is experiencing increased equipment intensity in its core mining markets, particularly in the oil sands and Chilean copper sectors. This trend is driven by longer haul distances and declining ore grades, which are expected to provide significant growth opportunities.
Additionally, Finning International has been delivering a substantial number of ultra-class mining trucks, which are projected to boost product support growth as parts and service consumption increase. The company also stands to benefit from infrastructure investments in Western Canada and expansion projects in South America. With robust demand supported by healthy commodity prices and improved cost discipline, Finning’s earnings potential has improved considerably. The stock’s valuation is at the lower end of its historical range, making it an attractive option compared to its peers.
In another report released on November 13, RBC Capital also maintained a Buy rating on the stock with a C$89.00 price target.