Q: Where would you rank Groupe Dynamite Inc amongst your favourite mid cap companies ? Assuming you feel it is in fact a mid cap stock at a 9 B market cap. A reason please. +5 year hold for a TFSA.
Thank you and Happy Holidays!
Thank you and Happy Holidays!
5i Research Answer:
GRGD has grown quickly into a mid-cap stock, and it has demonstrated that it is strong operationally, and it benefits from a few secular tailwinds. We like its fundamental profile, but it also benefits from growing demand from Millennials and Gen Z, and growth estimates continue to climb. We like the name, but it is becoming a premium valuation stock at 33X forward earnings. We continue to like it and would be comfortable with a long-term position here.