The Financial Post reports in its Saturday edition that the Canadian dealer of Caterpillar's massive earth movers and bulldozers is benefiting from a construction boom that has powered its stock into an epic rally.
A Bloomberg dispatch to the Post says that shares of Vancouver-based Finning International have surged nearly 90 per cent this year and are on pace for their best annual run since at least 1987. Analysts predict more gains ahead as a surge in the price of commodities -- including gold, copper and silver -- has boosted demand for mining equipment, just as a nationwide push for building infrastructure is gathering pace.
"The sentiment shift within Canada has been very helpful in terms of going from a hard 'No' on potential pipeline infrastructure projects to, 'How we're going to do this?'" Mark Rutherford, portfolio manager at Mawer Investment in Calgary, said.
Mr. Rutherford, whose firm Mawer has been a Finning shareholder since at least 2016 and currently owns nearly 2.6 million shares, sees long-term benefits for the company from the government's embrace of infrastructure spending.
Analysts covering the stock expect it to gain nearly 17 per cent over the next 12 months, as earnings continue to rise.
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