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Greens Stun Labour in Historic Gorton & Denton Upset

  The Green Party's Hannah Spencer joyous after the results of the Gorton and Denton by-election were announced Prime Minister Keir Starmer has been dealt a significant political setback after the Green Party captured Gorton and Denton, a Greater Manchester seat Labour had held for nearly a century. The by‑election result pushed Labour into third place, behind both the Greens and Reform UK, highlighting growing fractures in Britain’s traditional two‑party landscape. Green candidate Hannah Spencer secured the victory with a commanding share of the vote, marking the party’s first parliamentary by‑election win in northern England. Reform UK finished second, while Labour’s unusually weak performance intensified pressure on Starmer amid ongoing political turbulence and calls for stronger leadership.  The loss of such a long‑standing Labour stronghold underscores shifting voter sentiment and raises questions about the party’s ability to maintain its traditional base. Analysts have...
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Canadian tech stocks expected to deliver healthy returns in 2024, RBC says


The Canadian technology sector had a stellar performance in 2023, outperforming the broader market and delivering the highest returns since 2020. However, RBC Dominion Securities analysts Paul Treiber and Maxim Matushansky believe that the sector still has room to grow in 2024, albeit at a more moderate pace.

In a report released on Thursday, the analysts said that they expect healthy returns to be more widespread across Canadian tech stocks in 2024 than 2023, driven by three main factors: 1) valuation multiples for many Canadian tech stocks may rise in 2024; 2) organic growth and profitability may improve through 2024; and 3) the Consolidators, such as Constellation Software, CGI Group and Open Text, are likely to continue to create shareholder value through acquisitions.

The analysts noted that the valuation of the average stock in their coverage universe is below historical averages and peer group averages, and that a decline in interest rates could boost the discounted cash flow valuation of the sector. They also pointed out that most of the companies in their coverage are expected to be profitable in 2024, and that some of them may see growth stabilization or improvement as the pandemic-related headwinds ease.

The analysts also highlighted the potential of the Consolidators, which are disciplined allocators of capital that tend to find value in out of favour companies and have the capital to deploy in periods of financial or economic duress. They said that while Constellation and OpenText deployed record amounts of capital on acquisitions in 2023, they expect the other consolidators to deploy more capital on acquisitions in 2024 than 2023.

The analysts’ top five Canadian technology ideas for 2024 are: Constellation Software, Shopify, Kinaxis, Open Text and Calian Group.

The report also covered some of the other analyst actions on Thursday, such as target price adjustments for stocks in the software and services, mining and energy sectors. Some of the notable changes include: RBC’s upgrade of Alamos Gold to “outperform” from “sector perform”; CIBC’s upgrade of Aritzia to “outperformer” from “neutral”; and JP Morgan’s increase of its target price for Canadian Natural Resources to $102 from $101.

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