To watch: Power Corp, Uni-Select and Cogeco

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What to do with the securities of Power Corp, Uni-Select and Cogeco? Here are some recommendations from analysts likely to move prices in the near future. Note: the author may have a totally different opinion from that expressed.

Power Corporation of Canada (POW, $ 35.72): the end of the bargain?

By playing its cards well, the value of the net assets of Power Corporation could increase, which would allow it to eventually obtain an “outperformance” recommendation, anticipates Jaeme Gloyn, of National Bank Financial, who begins monitoring the conglomerate with a “sector performance” recommendation

Its stock is trading at a 26% discount on net asset value, compared to an average of 32% for five years. The analyst estimates that the gap could be reduced further to 22%.

In the short term, the potential increase in asset value could be fueled by three factors, Judge Jaeme Gloyn First, the Desmarais family company should continue to simplify its business model.

Then, his investments in Great-West Lifeco, IGM Financial and Groupe Bruxelles Lambert, which together represent more than 80% of the gross value of Power’s assets, could deserve a higher valuation, according to him. The analyst also points out that his other investments could create value, as in the company Lion Électrique. In the long term, the analyst sees potential on the side of alternative investments.

The analyst points out that the increase in the value of its net assets is largely linked to its stake in Great-West Lifeco (57% of its gross asset value). However, the consensus is rather timid as to the insurer’s outlook, as seven analysts recommend keeping the title.

The National Bank Financial analyst sets his target price at $ 38, which would represent a total return of 11%, including a dividend yield of 5%. It does, however, issue a “sector performance” recommendation, because other companies offer a more attractive return, in particular the IGM Financial stock, which would generate a total return of 24% if it reached its target price.

Uni-Select (UNS, $ 13.74): what to do with the debt?

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