AutoCanada Subject of New Buy Recommendation from Canaccord Genuity - Research Report Discussed in Video on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - January 18, 2013) - Investment firm Canaccord Genuity, issued a new report for AutoCanada Inc. (TSX:ACQ). Analyst Derek Dley reiterated his buy rating, increasing his target price to $19.50 from $16.50.
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AutoCanada is one of Canada's largest multi-location automobile dealership groups, and the only publically traded dealership group in Canada. The company operates 27 franchised dealerships throughout British Columbia, Alberta, Manitoba, Ontario, New Brunswick, and Nova Scotia, with heavy exposure to Alberta and British Columbia. The company sells numerous different brands, with Chrysler Group sales accounting for the bulk of revenue.
Canaccord believes "AutoCanada is well positioned to capitalize on a healthy new car sales market, and should remain one of the industry's primary consolidators as the market for public ownership opens up. In the meantime, investors should be rewarded with a healthy current dividend yield of 3.9%, and the likelihood of increasing dividends, as the company has increased its dividend for the last seven years."
The company recently completed the purchase of the assets of a Volkswagen dealership known as People's Automotive Ltd, located in Grande Prairie, Alberta, to be continued under the name of Grande Prairie Volkswagen.
Pat Priestner, CEO of AutoCanada commented, "The Volkswagen brand has been gaining significant momentum in Canada over the past few years. We are very proud to strengthen our partnership with Volkswagen Canada and share in the continued growth and success of the brand."
2012 was an exceptional year for new car sales in Canada, with over 1.67 million units sold, up 5.7% from 2011 levels, and just shy of the all-time record of 1.7 million units in 2002. According to industry insiders, 2013 is anticipated to be another strong year, as there remains pent-up demand in Canada for new cars, following the unwillingness of consumers to make large discretionary purchases during 2009-2011.
AutoCanada currently trades at $17.70, and with approximately 20 million shares outstanding, is capitalized at $354 million.
For more information about AutoCanada, please visit the company's website www.autocan.ca, or contact Jeff Christie, the company's Vice-President of Finance at 780-732-7164 or email firstname.lastname@example.org.
For a copy of Canaccord Genuity's research, contact your nearest Canaccord Genuity office. Their branches are listed on their website at www.canaccord.com.
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Barry Morgan, CFO