12:54 PM EDT, 07/08/2024 (MT Newswires) -- RBC Capital has updated its second quarter estimates for recent trends and its own channel checks in the Canadian trucking and diversified industrials sector.

"Overall, volume trends, freight pricing, and PMI data highlight a weak operating environment in Q2, which we expect to weigh on results in the quarter," co-authors Walter Spracklin and James McGarragle write. They also note valuations are near 5-year highs at Stella-Jones and TFI International ( TFII ) and approaching 5-year lows at Andlauer, Cargojet ( CGJTF ), and Mullen.

Cargojet ( CGJTF ) second quarter estimates have been moved higher thanks to a new charter deal and at Stella-Jones on the indication that demand is solid. RBC is trimming estimates for TFI International ( TFII ) on tweaks to its interest estimate.

Estimates have been left unchanged at Andlauer Healthcare Group ( ANDHF ), Mullen Group ( MLLGF ) and Westshore Terminals. RBC also expects visibility into the freight demand outlook (for Cargojet ( CGJTF ), Mullen and TFI International ( TFII )) to be the main focus in the second quarter. The analysts believe M&A pipelines will drive sentiment for AND, MTL and TFII, and highlight utility pole demand and pricing as well as margin as a discussion point for SJ.

Price: 37.97, Change: -0.39, Percent Change: -1.02