While the liberals didn’t win an outright majority, linking arms with the NDP or BQ will give them the help they need to pass new legislation. To garner support, there may need to be some concessions made on a case-by-case basis.

What types of concessions could be used?

Should the liberals look to coax support out of the NDP, they’d likely do so with a focus on affordable housing and lowering the cost of living. They could also appeal to the party through accelerated green transition efforts, which would help bring a bid back to the renewable IPPs.

The Bloc is incentivized by protecting the interests of Quebec, making it a much more straightforward approach for the liberals to have them in their corner. Fast-tracking mining projects and ensuring companies like Bombardier (BBD-B) and CAE (CAE) get their fair share of the coming wave of defense spending should do the trick.

Where do the two parties intersect?

Several companies sit in the crosshairs of a “two birds, one stone” situation where Carney looks to round up support from both the NDP and the Bloc.

The most obvious of the bunch would be Richelieu (RCH), a Quebec-based supplier of hardware and furnishings. The company should see tailwinds from a retrofitting cycle on the aging housing stock, as well as an increase in multi-unit and modular supply.

Affordable housing checks the NDP box and Quebec-based checks the BQ box…win/win. A setup like this could be material for RCH, who generates more than half of its revenue in Canada.

The segment has struggled lately, with margins under pressure and organic growth lacking…

… developments that appear priced in, given RCH trades at a large discount to its historical average.

Another clear setup would be Boralex (BLX), with roughly one third of its portfolio in Canada (mostly Quebec)…

… and potential for much more, as its relationship with Hydro-Quebec could bare more fruit soon.

While it trades at less of a historical discount than RCH, the setup could be interesting as it’s the only publicly traded, Quebec-based renewable IPP after the Innergex (INE) takeout.