Q: CLS or SHOP for growth in Canada? Is there another you prefer? Sector irrelevant.
5i Research Answer:
For a long-term growth story, with a solid management team and a large size, we like the diversified business and impressive moat that SHOP has built. For near-term growth that significantly benefits from the AI story, we like CLS, but we feel it is highly dependent on AI CAPEX spending from the hyperscalers. Overall, we would give SHOP the slight edge here.