Artificial intelligence (AI) could be an important tool for investors looking for their next investment opportunity, especially when it comes to smaller, lesser-known companies, according to the Toronto Stock Exchange’s (TSX) head of ownership. there is.
Canada’s largest companies receive a lot of analyst and media coverage, but not micro- and small-cap companies like those listed on TSX Venture, says chief executive of TMX Group (X.TO) Chief Executive John McKenzie said. Yahoo Finance Canada in an interview.
This is an information gap that AI could fill, he says.
“More discoverability of small cap companies, more insight into them – all can be created with that kind of technology. It is,” he said.
Through both internal development and acquisitions, the TMX Group has become the fastest growing segment in the most recent quarter as it has focused on enhancing its data and analytics capabilities.
Revenue from the data side of the business was up 14% year-over-year in the first quarter, while other divisions were flat or down 1%.
TMX’s data division is the largest portion of the company’s revenue mix, accounting for 34%.
But McKenzie said he’s not done yet and hopes that in the long term, “more than half” of the company’s revenue will come from that segment.
Analysts Raise TMX Price Target
The company reported record first-quarter revenue of $299.1 million and profit attributable to shareholders of $89 million, beating analyst estimates. Operating expenses he increased by 10%.
Bay Street analysts were largely optimistic about the outcome, with two raising their 12-month price targets.
CIBC Capital Markets analyst Nik Priebe increased his target to $150 per share from $140, and National Bank analyst Jaeme Gloyn increased his target from $152 to $155 per share.
“TMX delivered three keys to the quarter: (i) continued strong momentum in Trayport, (ii) delivering revenue growth with the help of pricing initiatives and M&A activity; At the same time (iii) it will provide an EBITDA margin beat, containing cost increases,” Gloyn said in a note to clients. Company.
“The only drawback is that organic expense growth of 8% year-on-year outweighs organic revenue growth of 6% year-on-year. It reflects the impact of this on listings and trading revenue growth.”
Michelle Zadikian is a Senior Reporter at Yahoo Finance Canada. follow her on her twitter @m_zadikian.
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