Inside the Market’s roundup of some of today’s key analyst actions
As it transitions into an asset-light model, ATB Capital Markets’ David Kideckel says he’s “encouraged” by Aurora Cannabis Inc.’s (ACB-T) downsizing.
However, in the wake of Thursday’s release of weaker-than-expected third-quarter financial results, the analyst stressed the Edmonton-based company’s near-term outlook remains “uncertain,” pointing to dwindling sales in the Canadian recreational market, a lack of visibility over international medical cannabis sales and the “still immaterial” sales from U.S. cannabidiol products.
Accordingly, Mr. Kideckel downgraded Aurora to “underperform” from a “sector perform” recommendation, taking a “more cautious stance on the stock.”
“Over the long-term, we maintain our view of ACB as one of the leaders in cannabinoid-based science, including biosynthetic cannabinoids (with Anandia), which we believe will be a key long-term value driver for the entire sector, as well as a leader in medical cannabis, with attractive growth optionality over the long-term,” he said.
For the quarter, Aurora reported net sales of $55.2-million, down 18.5 per cent from the second quarter and falling well below both Mr. Kideckel’s $72-million estimate and the consensus forecast on the Street of $69-ilion. An EBITDA loss of $24-million was also substantially higher projections (losses of $6.5-million and $9.9-million, respectively).
“We have reduced our revenue and profitability estimates due to uncertainty in the domestic (e.g. ACB consistently losing share) and international markets,” the analyst said. “We have increased our discount rate to 15 per cent from 14 per cent due to our lack of visibility over ACB’s path to profitability and its significant cash burn.”
With those changes, he cut his target for Aurora shares to $7.50 from $13. The average target on the Street is $12.12, according to Refinitiv data.
Elsewhere, Canaccord Genuity analyst Matt Bottomley lowered Aurora to “sell” from “hold” with a $7 target, down from $14.
“After continuing to lose market share in Canada’s adult-use market, we have made significant revisions to our near/long-term forecasts, which now include a terminal market share of 8 per cent (down from 14 per cent) in addition to a 300 basis points increase to our discount rate for execution risks given that ACB’s market share is currently well below this forecast,” said Mr. Bottomley.
Other analysts making target adjustments include:
* Desjardins Securities’ John Chu to $8 from $11 with a “sell” rating.
“The same concerns we had since our downgrade to Sell on February 12 (a big quarterly miss, market share loss, questions on its ability to grow premium flower at its Sky facility and lack of clarity on a timeline for positive EBITDA) continued into 3Q, and we suspect will persist into 4Q as well,” he said.
* MKM Partners analyst William Kirk to $6 from $9 with a “sell” rating.
* Piper Sandler’s Michael Lavery to US$7 from US$9 with a “neutral” rating.
=====
Desjardins Securities analyst Chris Li thinks Canadian Tire Corporation Ltd.’s (CTC.A-T) “exceptional” first-quarter results show that the COVID-19 pandemic has made it “a stronger retailer,” pointing to “multiple sales growth and margin enhancing levers”
“A key question is whether CTC will be able to leverage its competitive advantages to sustain revenue growth and gain market share once the pandemic is under control and consumer spending shifts back to travel and entertainment,” said Mr. Li. “Getting the correct level of CTR revenue post the pandemic is critical. For 2022, we expect CTR revenue to be 16 per cent higher than the 2019 level. This implies an average annual growth rate of 5 per cent. Between 2015 and 2019, CTR revenue growth averaged only 3–4 per cent per year. All else equal, every 100 basis points change in our 2022 revenue growth assumption impacts our EPS forecast by 36 cents (2 per cent).”
Seeing the second quarter “off to a strong start” despite further pandemic-related restrictions, Mr. Li raised his earnings and revenue expectations for 2021 and 2022, leading him to hike his target for Canadian Tire shares to $234 from $195 with a “buy” rating. The average on the Street is $206.45.
“Despite the strong share price reaction to the results (up 10 per cent and 27 per cent year-to-date), we do not view valuation as demanding at 13.5 times forward EPS (largely in line with the long-term average),” e said. “We believe there is room for further multiple expansion as investors gain greater confidence in the execution of CTC’s growth strategies (e-commerce, Triangle loyalty, enhanced data analytics, owned brands, operational efficiency program, etc). CTC traded at peak P/E of 15–16 times between 2015 and 2017 when the company was achieving strong organic Retail EBITDA growth.”
Other analysts making target changes in response to the strong earnings release include:
* Scotia Capital’s Patricia Baker to $242 from $205 with a “sector outperform” rating.
“The year-over-year improvement in performance remarkably was driven primarily by the very strong results in the Retail segment, which saw very strong sales translate to a more than doubling of Retail EBITDA year-over-year,” said Ms. Baker. “CTFS also saw a significant year-over-year improvement in EBITDA driven primarily by an allowance reversal. There is no doubt that the pandemic and the consequent shift in consumer spending patterns has favoured CTC.A’s assortment. However, we note that the fact that these strong trends took place against a very challenged backdrop of COVID-19 restrictions on retail operations speaks to the company’s agile response to these and the willingness to invest in inventory to support the demands of the Canadian consumer. Across the board, it is clear CTC.A has been gaining share, and it seems to us equally clear that these share gains are sustainable.”
* RBC’s Irene Nattel to $232 from $215 with an “outperform” rating.
“CTC delivered another quarter of exceptional results both in store and online, underscoring its positioning as a destination retailer,” she said. “In our view, performance through the pandemic, notably rapid ramp-up of eCommerce to an estimated 11 per cent of sales, puts into question the argument that CTC could be challenged to compete effectively against both discount and online peers. We remain highly constructive on the 2021/22 outlook, underpinned by pent-up consumer demand, dealer replenishment, strong engagement on digital platforms and beneficial impact of a strong residential real estate market.”
* CIBC’s Mark Petrie to $234 from $202 with an “outperformer” rating.
* TD Securities’ Brian Morrison to $240 from $210 with a “buy” rating.
* Canaccord Genuity’s Luke Hannan to $220 from $195 with a “hold” rating.
* National Bank Financial’s Vishal Shreehar to $219 from $201 with an “outperform” rating.
* BMO’s Peter Sklar to $223 from $178 with a “market perform” rating.
=====
Though investors weren’t impressed with the 2022 outlook from Canada Goose Holdings Inc. (GOOS-T), sending the luxury outerwear retailer’s shares down over 9 per cent on Thursday, RBC Dominion Securities analyst Kate Fitzsimons said its key long-term growth levers, particularly e-commerce and its position in China, “continue to strengthen” and sees any resumption of tourism this year as a “likely a source of significant upside.”
“The stage is set for potentially positive revisions to come, given ongoing momentum in digital and international growth initiatives,” she said. “Considering DTC gross margins in the mid-70s/wholesale margins in the mid-40s and SG&A growth in the low-30s (accounting for higher normalized marketing costs, investments behind footwear, improvements to digital and lapping LY’s pullback), GOOS sees adj. EBIT margin shaking out in the mid-to-high-teens. The Street was at 22.2 per cent prior to [Thursday] morning’s print, with [Thursday’s] selloff likely reflecting a slower margin recovery than what investors wanted to see. The return of tourism, not contemplated in FY22 guidance, could carry major upside should trends inflect sooner than expected and is the key to GOOS’s margin recovery story (that said, we view a rebound in international travel as more of a FY23 driver).”
Ms. Fitzsimons pointed to a trio of signs that its long-term growth levers are “strengthening.” They are “ongoing international momentum” with growth in China and nine new international stores expected this year; “new categories supporting the transition to lifestyle, with footwear launching in fall;” and ongoing e-commerce momentum.
Though she trimmed her earnings expectations for fiscal 2022 and 2023 and her target for its shares to $53 from $68 (consensus is $54.92), Mr. Fitzsimons emphasized she remains a buyer on Canada Goose, particularly given Thursday’s pullback. She maintained an “outperform” rating.
“We see Canada Goose as in the middle innings of its growth trajectory, particularly in the fragmented and growing premium outerwear market,” she said. “We see Canada Goose’s premium positioning, technical emphasis, strong and authentic heritage, customer loyalty, and seasoned management team as key assets as the brand approaches $2-billion over time from $904-million in FY21. Although COVID is impacting wholesale partners and GOOS’s own doors, GOOS is well positioned to weather the volatility given a strong balance sheet and a very agile supply chain.”
Other analysts making target changes include:
* Barclays’ Adrienne Yih to US$41 from US$42 with an “equal weight” rating.
“With a FY4Q21 sales beat driven by digital growth, we believe the next catalyst for shares is store recovery, expected when global travel resumes. As such, GOOS is a late-cycle story,” said Ms. Yih.
* CIBC’s Mark Petrie to $59 from $57 with an “outperformer” rating.
* Credit Suisse’s Michael Benetti to $68 from $64 with an “outperform” rating.
* TD Securities’ Meaghen Annett to $56 from $64 with a “buy” rating.
=====
Following the release of “solid” first-quarter financial results, Desjardins Securities analyst Benoit Poirier sees WSP Global Inc. (WSP-T) possessing “a compelling cocktail of organic growth, cross-selling opportunities and M&A.”
After the bell on Wednesday, the Montreal-based professional services company reported adjusted EBITDA of $241-million, exceeding the estimates of Mr. Poirier and the Street ($216-million and $220-million, respectively), which the analyst said was “driven by execution and improved productivity.”
“Management is optimistic for the year,” he said. “WSP expects net revenue of $7.5–8.0-billion (consensus was $7.8-billion; we had forecast $7.7-billion), which implies organic growth of 2–5% for the year (we expected 2.8 per cent). Meanwhile, adjusted EBITDA should be C$1,220–1,290-million (consensus was $1,194-million; we had forecast C$1,217-million). WSP is currently in hiring mode to execute on its healthy backlog and robust pipeline of opportunities.”
Already seeing the cross-selling opportunities brought by the late 2020 acquisition of Golder Associates, Mr. Poirier thinks management is likely to remain active on the M&A front.
“Since the announcement of the Golder acquisition, WSP has realized four tuck-in acquisitions totalling 605 employees in strategic sectors and geographies. While the focus will likely remain on tuck-ins throughout the integration, we believe WSP’s solid balance sheet will enable management to consider another transformative acquisition once the integration is completed (9–12 months post closing would be reasonable, in our view),” he said.
After raising his earnings expectations for 2021 and 2022, Mr. Poirier increased his target for WSP shares to $147 from $127. The average is $138.62.
“We believe WSP’s solid M&A track record and balance sheet combined with its diversified and resilient platform warrant our bullish stance,” he said.
Meanwhile, citing “stretched valuations,” Laurentian Bank Securities Nishita Mehta downgraded WSP to “hold” from “buy” with a $153 target, rising from $126.
“Q1/21 delivered a strong beat on Adj. EBITDA margin, which came in at 14.5 per cent vs. our and consensus estimates of 12 per cent and 13 per cent, respectively,” said Ms. Mehta. “The margin improvement reflects WSP’s competitive advantage, its ability to acquire businesses and then drive efficiencies to improve overall margins. We recognize the high valuation multiple for WSP, yet we remain comfortable given its Pro-forma leverage of 1.2 times post the Golder acquisition, giving ample room for acquisitive growth opportunities with management highlighting a robust pipeline.”
Other analysts making target changes include:
* Scotia Capital’s Mark Neville hiked his target to $140 from $125 with a “sector perform” rating.
“Our revised 2021 forecasts sit near the upper end of the guided range but could still prove conservative, if the Q1 margin trend is any indication,” said Mr. Neville. “Growth rates should also accelerate through the year as the company is actively recruiting talent to execute on the backlog. Furthermore, with leverage at just 0.2x and what sounds like an M&A dialogue, we anticipate incremental M&A through the year (on top of the approximately 600 employees acquired post the Golder announcement) that would also be additive to our forecasts. Finally, while early, the Golder acquisition sounds as if it is running ahead of initial plan.”
* ATB Capital Markets’ Chris Murray to $135 from $126 with a “sector perform” rating.
“Overall, we remain neutral on WSP with the Company trading at historical highs and in line with our estimate of fair value; however, we could become more positive should the share price pull back to levels representing a more attractive risk/reward set-up,” said Mr. Murray.
* RBC Dominion Securities analyst Sabahat Khan to $148 from $139 with an “outperform” rating.
“WSP remains our favorite idea in the E&C space given the outlook for good organic growth over our forecast horizon, and a solid balance sheet that can support continued M&A,” he said.
* CIBC’s Jacob Bout to $150 from $145 with an “outperformer” rating.
* BMO Nesbitt Burns’ Devin Dodge to $138 from $130 with a “market perform” rating.
=====
Following recent share price depreciation, Canaccord Genuity analyst Doug Taylor sees the risk-reward proposition for Mogo Finance Technology Inc. (MOGO-T, MOGO-Q) “again become compelling for investors looking for exposure to the cryptocurrency/fintech theme.”
That led him to raise his rating for the Vancouver-based company to “speculative buy” from “hold.”
On Thursday, Mogo reported first-quarter results that fell in line with expectations, but Mr. Taylor said the release was “eclipsed” by its announcement of another “meaningful” position in Coinsquare. It now possesses a 37-per-cent stake in the crypto-trading platform with a warrant to increase its ownership to 48 per cent.
“Given Coinsquare’s financial performance of late - the latest run rate was $95-million in revenue and 50-per-cent EBITDA margins – and the multiples offered to other cryptocurrency trading platforms, you could argue that Mogo is getting the asset for a bargain,” said the analyst.
“As the company continues to build its ownership in Coinsquare, potentially to the point of consolidating its results, we think there is the potential to further surface value.”
Emphasizing increased confidence in the potential upside of Mogo’s cryptocurrency strategy, he trimmed his target to $12 from $14. The average is $15.
=====
In other analyst actions:
* After “mixed” first-quarter results, Canaccord Genuity analyst Derek Dley raised The Green Organic Dutchman Holdings Ltd. (TGOD-T) to “hold” from “sell” with a 30-cent target, up from 20 cents. The average is 23 cents.
“In our view, the company is on its way to improving its capital structure, however, we are awaiting more advancement on revenue generation and market share gains before becoming more constructive on the name,” said Mr. Dley.
* After a “decent” first quarter, Haywood Securities analyst Kerry Smith upgraded Lundin Gold Inc. (LUG-T) to “buy” from “hold” with a $13 target, down from $14 and below the $15.09 average.
“We have updated our model for Q1/21 operational and financial results and have also updated our production assumptions to account for Company guidance for decreasing head grades in Q2 and Q3 and increasing head grade and throughput in Q4/21. Our production for the year increases from 385,000 to 403,000 and our total cash cost assumption increases slightly from US$725/oz to US$730/oz. Our 2021 CFPS estimate increases from US$1.31 to US$1.42,” said Mr. Smith.
* CIBC World Markets analyst Hamir Patel downgraded Loop Energy Inc. (LPEN-T) to “neutral” from “outperformer” with a $10 target, down from $18, while National Bank Financial’s Rupert Merer lowered his target to $15 from $20 with an “outperform” recommendation. The average is $18.
“. While the shares are off 42 per cent since the IPO in February, they have actually fared better than NA peers (BLDP and PLUG), which are down 60 per cent,” said Mr. Patel. “Our more cautious view on LPEN is not driven by any company-specific issues (if anything Loop appears to be executing well with its growing backlog), but rather due to increasing risks to the long-term TAM potential for fuel cells in heavy duty motive applications as battery-electric innovations appear to be outpacing developments in the hydrogen economy. At the same time, we believe the market will ascribe higher discount rates to growth projections across the entire electric mobility space given the recent wave of short reports/accounting/disclosure issues that have led to greater scrutiny of company order pipelines and technology claims.”
* Mr. Patel raised his Intertape Polymer Group Inc. (ITP-T) target to $39 from $37 with an “outperformer” rating. The average is $38.06.
* CIBC’s Dean Wilkinson raised his Tricon Residential Inc. (TCN-T) target to $15.50, exceeding the $14.97 average, from $14.50 with an “outperformer” rating.
* Mr. Wilkinson increased his targets for Smart Centres Real Estate Investment Trust (SRU.UN-T) to $31 from $27 with an “outperformer” rating and American Hotel Income Properties REIT LP (HOT.U-T) to US$3.75 from US$3.25 with a “neutral” rating. The averages are $27.39 and US$3.41, respectively.
* Mr. Wilkinson also raised his Brookfield Asset Management Inc. (BAM-N, BAM.A-T) target to US$56 from US$54, keeping an “outperformer” rating, while Citi’s William Katz raised his target to US$54.50 from US$53 with a “buy” rating. The average is US$54.75.
* CIBC’s Nik Priebe bumped up his Power Corporation of Canada (POW-T) target to $44 from $41 with an “outperformer” rating, while National Bank Financial’s Jaeme Gloyn raised his target to $41 from $38 with a “sector perform” recommendation. The average is $40.
* Mr. Priebe hiked his CI Financial Corp. (CIX-T) target to $23 from $21 with a “neutral” rating, while Scotia Capital’s Phil Hardie raised his target to $24 from $22 and RBC’s Geoffrey Kwan bumped up his target to $25 from $24 with an “outperform” rating. The average on the Street is $24.31.
* CIBC’s Mark Jarvi cut his target for Northland Power Inc. (NPI-T) to $47 from $49 with an “outperformer” rating, while National Bank’s Rupert Merer cut his target to $50 from $52 with an “outperform” recommendation, RBC’s Nelson Ng lowered his target to $45 from $51 with a “sector perform” rating and Scotia Capital’s Justin Strong trimmed his target to $45 from $51 with a “sector outperform” rating. The average is $52.31.
“We believe the higher interest rates and raw material costs could start eroding development returns,” said Mr. Ng.
* TD Securities analyst Jonathan Kelcher raised his target for Automotive Properties REIT (APR.UN-T) to $13 from $12.50 with a “buy” rating, while CIBC’s Dean Wilkinson increased his target to $13.50 from $12.50 with an “outperformer” rating and Desjardins Securities’ Kyle Stanley raised his target to $12.50 from $12.25 with a “buy” rating. The average is $12.30.
“It appears that portfolio operations have returned to pre-pandemic levels, with rent collections (including deferred amounts) trending at 100 per cent,” said Mr. Stanley. “APR is well-positioned for external growth ($150-million-plus acquisition capacity). We maintain our Buy rating; however, we are becoming more cautious given the REIT’s long-term lease profile and bond-like cash flows in the context of the current inflationary environment.”
* Mr. Kelcher raised his target for Sienna Senior Living Inc. (SIA-T) target by $1 to $17 with a “buy” rating, while National Bank Financial’s Tal Woolley raised his target to $16.50 from $16 with an “outperform” rating and Canaccord Genuity’s Brendon Abrams bumped his target to $15.25 from $13.50 with a “hold” rating. The average is $14.78.
“In our view, the pace of recovery in the company’s retirement segment will be gradual, rather than “V” shaped, and we believe the company’s overall operating margins will likely stabilize somewhere below pre-pandemic levels,” said Mr. Abrams. “Further, the scale of the company’s redevelopment of its Class C LTC beds (up to $600 million over the next 5-7 years) gives us some pause given the long-dated and uncertain returns, loss of NOI from existing beds, and anticipated higher leverage. Based on this outlook, combined with the strong appreciation in the company’s share price since bottoming last summer, a rally we admittedly missed, we remain on the sidelines.”
* CIBC’s Anita Soni reduced her Kinross Gold Corp. (KGC-N, K-T) target to US$11.50 from US$12 with an “outperformer” rating. The average is US$10.94.
* CIBC’s Robert Bek lowered his BBTV Holdings Inc. (BBTV-T) target to $15.50 from $18.50 with an “outperformer” rating. The average is $19.63.
“In our view, the stock remains attractive relative to its material opportunity to drive profitable growth over the next few years. We continue to expect the shares to appreciate materially as the company executes on its Plus Solutions strategy over the next 12-18 months,” said Mr. Bek.
* CIBC’s Kevin Chiang increased his Chorus Aviation Inc. (CHR-T) target to $5.75 from $5.25, maintaining an “outperformer” rating. The average is $5.45.
“We continue to point to CHR benefiting from a more resilient cash flow stream due to its contractual nature and end-market diversity. We remain positive on CHR,” he said.
* RBC’s Maurice Choy increased his TransAlta Corp. (TA-T) target to $14 from $13 with an “outperform” rating, while BMO Nesbitt Burns’ Ben Pham raised his target to $12 from $11.50 with a “market perform” rating. The average is $13.65.
* Scotia Capital analyst Orest Wowkodaw cut his Turquoise Hill Resources Ltd. (TRQ-T) to $30 from $32 with a “sector outperform” rating, while Dalton Baretto of Canaccord Genuity lowered his target by $1 to $24 with a “hold” rating and BMO Nesbitt Burns’ Jackie Przybylowski trimmed her to $18 from $21 with an “outperform” rating. The average is $26.16.
“In the near term, gold production guidance for this year has been cut due to the impact of the previously announced pit wall slippage, despite previous assurance that guidance would not be impacted,” said Mr. Baretto. “However, more importantly we think there is a significant and increasing probability of the undercut being delayed, despite TRQ management assurances to the contrary. "
* Scotia’s Jeff Fan cut his Quebecor Inc. (QBR.B-T) target to $38 from $39 with a “sector outperform” rating, while TD Securities’ Vince Valentini raised his target to $40 from $39 with a “buy” rating. The average is $39.17.
“We continue to view the stock as cheap relatively to its peers trading at 7.1 times EV/EBITDA vs the Big 3 ranging from 7.9 times to 8.2 times,” said Mr. Fan. “However, we have taken a more conservative approach in assuming no material multiple expansion in deriving our target price due to the uncertainty related to the potential national wireless expansion. We expect the relative discount valuation will remain until the uncertainty subsides
* Scotia’s Himanshu Gupta raised his Slate Grocery REIT (SGR.UN-T) target to $10 from $9.50, exceeding the $9.77 average, with a “sector perform” rating.
* Scotia’s Konark Gupta increased his Cargojet Inc. (CJT-T) targer to $225 from $220 with a “sector outperform” rating. The average is $259.45.
* Scotia’s Mark Neville raised his CCL Industries Inc. (CCL.B-T) target to $78 from $77 with a “sector outperform” rating, while Raymond James’ Michael Glen raised his target to $79 from $75 with an “outperform” rating. The average is currently $76.89.
“The momentum seen by the business has continued into 2021, with the sum-of-the parts (i.e. all segments and sub-segments in combination) demonstrating a fairly resilient business model,” said Mr. Glen. “Pre-COVID we would have had a number of conversations with investors regarding the cyclicality of CCL, particularly in comparison to the ’08-’09 financial crisis (i.e., how would the business perform in a downturn given how much it has changed since that time). While clearly the 2020 downturn was different vs. the financial crisis, we have been positively surprised at how well CCL’s operations have performed through the entire trough and rebounded in terms of EPS and FCF. Looking forward, we continue to see opportunity for gains within our model, particularly within Avery (where badges and office products stand to rebound), Checkpoint (which there is clearly a rebound to take place with apparel labels and security tags), and portions of CCL Label (Food and Beverage).”
* National Bank Financial analyst Jaeme Gloyn raised his target for Home Capital Group Inc. (HCG-T) to $46 from $44 with an “outperform” rating. Other analysts making changes include: Scotia Capital’s Phil Hardie to $44 from $38 with a “sector perform” rating; TD Securities’ Graham Ryding to $43 from $39 with a “buy” rating; Raymond James’ Stephen Boland to $38 from $36 with a “market perform” rating and RBC Dominion Securities’ Geoffrey Kwan to $45 from $38 with an “outperform” recommendation. The average is $40.29.
“We see significant valuation upside in the near term driven by strong housing/mortgage market activity, attractive valuation and likely substantial return of capital,” said Mr. Kwan.
* Mr. Gloyn also raised his target for Morneau Shepell Inc. (MSI-T) to $39 from $38 with an “outperform” rating. The average is $38.60.
* National Bank’s Adam Shine bumped up his Yellow Pages Ltd. (Y-T) target to $13.50, topping the $13.17 average, from $13 with a “sector perform” rating.
* National Bank’s Matt Kornack raised his Slate Office REIT (SOT.UN-T) target to $4.50 from $4.25, keeping a “sector perform” rating. The average is $4.63.
* National Bank’s Zachary Evershed increased his Uni-Select Inc. (UNS-T) target to $17 from $14 with an “outperform” rating, while TD Securities’ Daryl Young raised his target to $18 from $16.50 with a “buy” rating and BMO Nesbitt Burns’ Jonathan Lamers bumped his target to $18 from $17 with an “outperform” rating.. The average is $16.90.
* National Bank’s Travis Wood cut his Enerplus Corp. (ERF-T) target to $9.50 from $10.50 with an “outperform” rating. The average is $9.46.
* Mr. Wood also raised his Suncor Energy Inc. (SU-T) target to $33 from $29 with a “sector perform” rating and Imperial Oil Ltd. (IMO-T) target to $38 from $33 with a “sector perform” recommendation. The averages are $32.95 and $35.50, respectively.
* TD’s Derek Lessard raised his K-Bro Linen Inc. (KBL-T) target to $55 from $54 with a “buy” rating, while National Bank’s Endri Leno increased his target to $46 from $42 with a “sector perform” recommendation. The average is $52.07.
* BTIG analyst Camilo Lyon cut his Trulieve Cannabis Corp. (TRUL-CN) target to $98 from $102 with a “buy” rating, while ATB Capital Markets’ Kenic Tyghe raised his target to $80 from $78 with an “outperform” rating. The average is $87.38.
* ATB Capital Markets analyst Martin Toner raised his target for Docebo Inc. (DCBO-T) to $95 from $85 with an “outperform” rating, while Scotia Capital’s Paul Steep increased his target to $59 from $57 with a “sector perform” rating. The average is $78.76.
“Our thesis on DCBO remains that the long-term opportunity depends largely on the company’s ability to sustain or accelerate its organic growth, as it continues to invest in growing its sales resources to drive growth in North America and Europe over the medium term,” said Mr. Steep. “We continue to see M&A as a potential for driving value as well as management’s ability to maintain the firm as a “Rule of 40” SaaS company. Our target price moves to $59 per share (previously $57 per share) based on revising our estimates post-Q1 with no change to our target multiple applied on F2022 estimates.”
* Canaccord Genuity analyst Yuri Lynk reduced his target for shares of AirBoss of America Corp. (BOS-T) to $46 from $51 with a “buy” rating, while Cormark Securities’ David Ocampo raised his target to $54 from $50 also with a “buy” recommendation. The average is $48.40.
“With the two-year horizon bid book sitting north of $1-billion, we have more confidence that BOS will be able to replicate its recent success by winning other sizable defence orders,” said Mr. Ocampo..
David Leeder