Q: Seen this stock drift down almost 20% in the last few weeks. I see they have earnings report in Mid March. Wondering if you have a good explanation for slide despite no obvious news. Not sure if it's tariff related. Your opinion of best of action. Eg Sell or wait for earnings report. Not a big fan of average down when rest of market is flat or going up. Thanks. Chris
5i Research Answer:
We think it is nearly all tariff/Trump fear here. There has been no recent company news. National Bank did lower its target price recently, from $175 to $170. The company gets 60% of revenue in the US, but much of this product is made in Canada. Still, the market is growing fast, and with the stock down 25% YTD we think the concern is embedded now in valuation. We would HOLD.