BMO Capital analyst Devin Dodge maintained a Buy rating on Toromont Industries (TIH – Research Report) yesterday and set a price target of C$138.00.
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Devin Dodge has given his Buy rating due to a combination of factors including Toromont Industries’ strong financial performance and strategic execution. The company’s earnings in the fourth quarter of 2024 exceeded expectations, with a notable increase in both EBIT and EPS, driven by robust sales in new equipment and improved margins in the Equipment Group. Additionally, the Equipment Group’s revenue growth and the expansion of EBIT margins reflect successful management and positive execution.
Furthermore, CIMCO, a division of Toromont, is gaining momentum with a significant increase in revenue and improved EBIT margins due to strong cost controls and operational efficiency. The company’s backlog and bookings have reached new heights, providing a solid outlook for 2025. Despite some macroeconomic uncertainties, such as potential tariffs, the overall activity levels are improving, and the company’s strong balance sheet and expanding technician workforce position it well for continued growth. This optimistic outlook, coupled with a reasonable valuation, supports the Buy rating.