The Globe and Mail reports in its Thursday edition that TD Cowen's Cherilyn Radbourne still rates Finning International "buy." The Globe's David Leeder writes that Ms. Radbourne tweaked her share target ahead by $2 to $106. Analysts on average target the shares at $103.20. With the first quarter already "seasonally weak" for Canadian heavy equipment dealers, Ms. Radbourne warns that near-term results could be even more "choppy." However, she sees the market "primarily underwriting the group's 2027/2028 earnings power (nation-building infra, mining strength, data centers, etc.)." Ms. Radbourne says in a note: "Strong new equipment sales (2020-2025) will drive a future product support annuity, albeit with a two to three year lag. Prime Minister Carney now has a majority gov't backing his nation-building agenda and high energy prices could accelerate plans to diversify Canada's exports. Opportunities in power are plentiful, spanning data centre development, dist'd generation/grid support, natural gas as a transition fuel, etc. Key commodity prices are historically high (copper -- Finning/gold -- Toromont), and while AI can offer considerable efficiency, it is a long way from replacing skilled technicians/mechanics."
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