Q: I've done quite well with SHOP, having bought this in mid 2022 in the high $30's. It has grown to over 7% of my account.
1) Do you think it can still reach/exceed its old highs from 2021? Wouldn't that make it one of the largest companies (by market cap) on the TSX?
2) What the maximum weighting you would hold in SHOP?
1) Do you think it can still reach/exceed its old highs from 2021? Wouldn't that make it one of the largest companies (by market cap) on the TSX?
2) What the maximum weighting you would hold in SHOP?
5i Research Answer:
In our balanced model portfolio we are ~7% now with the move this month, and we would take that as guidance. If it keeps rising we will likely trim in our next update. Its high is just under $214 so it would need to rise another 26% to break its old high. Certainly in a good market that could be doable now, considering it rose 65% this year alone. It is $30B below RY's market cap currently and it would be the largest company again if it does well. This would require strong markets, and the company exceeding estimates and raising guidance. This is all 'possible' but of course not guaranteed.