Q: I bought some CPX recently expecting modest gains in share price and a decent dividend. But the share price has risen rapidly and now surpasses the targets of most analysts. Can you suggest what is happening? Should I take my quick profits and move on?
John
John
5i Research Answer:
Brokers have raised their targets recently, but it mostly looks like the 'AI needs energy' trade is back on in Canada. With a new datacentre opening up in Edmonton, companies with a western Canada focus have seen an uptick in interest. With interest rates moving lower, we would be fine holding, but trimming to manage positon size if it rises further.