Raymond James Analyst: Expect Smooth Transition at Finning International

Finning International Ltd. (FINGF.PK) said goodbye to President Ian Reid on Thursday, after the company veteran opted for early retirement after more than twenty years of service.

Shares dropped more than 2% on the news of Mr. Reid's departure, but Raymond James analyst Ben Cherniavsky told clients that Mr. Reid's replacement Dave Parker, currently senior vice president at Finning (Canada), has what it takes to keep the company on track.

In a research note Mr. Cherniavsky said:

Mr. Reid's departure will be a loss to the organization, in our view. Nevertheless, we have always said that one of Finning's greatest strengths is its depth of management, and in that regard we believe that Dave Parker's appointment is promising. We have met Mr. Parker many times over the years, and are aware of the valuable contributions he has made to Finning in all of his roles.

While, Mr. Cherniavsky said Mr. Parker will need some time to prove himself, the analyst also said he believes the transition will be smooth. He doesn't expect the executive shuffle to impact his current investment thesis and reiterated his "market perform" rating and C$31.25 price target.