Q: What are your thoughts on CCL.B in light of potential US tariffs? Would you continue to hold? Is there another stock with similar exposure and less risk of being impacted by the changing administration in the US?
5i Research Answer:
The US and Puerto Rico accounted for 38.6% of CCL.B's total revenue in 2024. While the potentially increased tarriffs could impact many Canadian stocks, we think that CCL.B's reliance on the US is much less than others. The stock has done very well year-to-date, up more than 30%. The company has historically been quite acquisitive, and we think this catalyst paired with an improved macroeconomic climate makes the stock attractive in future years. It is the largest player in the Canadian packaging space so we favour it relative to competitors here.