Q: Any news on MDA big drop? Thinking of moving out into Are which is gaining momentum,
5i Research Answer:
BMO cut its price target from $40 to $36, and management released a market update that stated it is monitoring fluctuations in its share price that appear to be the result of unconfirmed and speculative media reports related to mergers and acquisitions in its customer base. Largely, the broader markets have been pulling back, and higher growth names in particularl have declined. We think part of it is mostly just market-related selling.
ARE is in a different industry, but its momentum is positive, and for a more balanced name, we think ARE looks interesting here.