Disclosure: Bullpen receives compensation from VersaBank for research coverage. VersaBank is also an IR client of LodeRock Advisors, an affiliate of Bullpen.
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WHAT'S ON TAP
Brookfield’s $1.2B industrial bet
Eldorado buys Foran for $3.8B
VersaBank partners with Stablecorp
AtkinsRealis runs on nuclear project
Thomson loses 15% on AI risk
HOT OFF THE PRESS
Brookfield bets $1.2B on industrial real estate
Following the launch of its $100B AI infra strategy late last year, Brookfield (BAM) is back at it - buying Peakstone Realty Trust for $1.2B (a >30% premium). While the acquisition isn’t directly linked to AI…
… like its recent $80B nuclear deal, the acquired industrial real estate portfolio is an indirect beneficiary - given it’s situated in key data center hubs.
Combine that with supply constraints for outdoor storage and the demand for existing assets should be strong, supporting high occupancy and rent growth.
Eldorado buys Foran for $3.8B
Mining M&A is picking up, with Eldorado (ELD) announcing its $3.8B acquisition of Foran (FOM) - a deal that increases its exposure to Canadian copper…
… and comes at an interesting time, with both companies bringing cornerstone assets to commercial production in H2’26. So, near-term execution risk - but serious financial upside if they can stick the landing…
… which could drive the re-rate management is looking for.
VERSABANK (VBNK)
VersaBank (VBNK) was up more than peers yesterday after announcing it will serve as the custodian for Stablecorp’s QCAD, the first regulatory compliant Canadian-dollar stablecoin. With no QCAD in circulation yet, the financial impact isn’t clear…
… so yesterday’s bid was likely driven by optimism around the digital asset strategy, with big names like Circle and Coinbase backing Stablecorp. Success as a custodian and deposit token issuer would add a low cost funding source…
… which could support growth in the core business at better margins, depending on the durability of these balances.
Importantly, any incremental wins here are upside - as we don’t include this nascent line of business in our valuation analysis.
ON OUR RADAR
GAINERS & LOSERS
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AtkinsRealis (ATRL) ran 8% on news that the Darlington refurbishment project was finished ahead of schedule and under budget. At ~40% of ATRL’s backlog ($5B)…
… executing nuclear projects of this scale gives the market confidence in the company’s ability to deliver going forward, justifying its current premium.
Thomson Reuters (TRI) shed another 15% yesterday on the back of Anthropic’s push into legal applications, which represent more than 40% of TRI’s revenue.
Down 50% over the past year (alongside many software names), it’s not the first AI legal threat to spark investor concern…
… but those concerns haven’t translated to impact yet, with both organic growth and margins in the segment showing resilience.
INSIDER TRANSACTIONS
| Insider | Company | Value |
|---|---|---|
| Marc Giroux | Metro (MRU) | $584K |
| Jean-Michel Coutu | Metro (MRU) | $291K |
| David Fennell | G Mining (GMIN) | $1.7M |
EARNINGS
YESTERDAY’S EARNINGS
| Company | Actual | Consensus |
|---|---|---|
| 🇨🇦 Suncor (SU) | 1.10 | 1.03 |
TODAY’S EARNINGS
| Company | Time | Consensus |
|---|---|---|
| 🇨🇦 ATS Corp. (ATS) | AM | 0.44 |
| 🇨🇦 Brookfield (BAM) | AM | 0.44 |
| 🇨🇦 FirstService (FSV) | AM | 1.32 |
| 🇨🇦 Sangoma (STC) | PM | 8.8M |
| 🇺🇸 Alphabet (GOOG) | PM | 2.64 |
| 🇺🇸 Qualcomm (QCOM) | PM | 3.40 |
| 🇺🇸 Uber (UBER) | AM | 0.80 |
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