Q: What is your current view on CCL.B? Do they have a risk with potentential tarrifs? Would you consider it a buy, hold or sell? Is there a preferred stock in this same sector?
5i Research Answer:
We would consider it a HOLD. It has been a bit disappointing, and growth is relatively low, but its cash flow is stable and it is priced well. The majority of its business is in the US and there is very little actually in Canada, so there is not likely a lot of Canada/US cross border tariff risk here. But.....if aluminum prices rise it will have some exposure. The TSX puts it into consumer discretionary. We would prefer ATZ here but only if one is growth-focused.