Inside the Market’s roundup of some of today’s key analyst actions
National Bank Financial analyst Maxim Sytchev believes the “aggressive” rebound in hot-rolled coil prices warrants caution for investors.
Accordingly, he lowered his recommendation for shares of Stelco Holdings Inc. (STLC-T) to “sector perform” from “outperform” on Wednesday following significant share price appreciation thus far in 2022.
“We went through multiple decades of data to better understand supply shocks and their inherent volatility spikes across multiple industrial commodities in addition to HRC,” he said in a research report. “Our goal was to see how often these shocks happen, what causes them outside economic cycles, and how long do their respective price climbs last once the shock sets in; this, by extension, provides a point of reference to compare the current HRC price escalation. Our analysis concluded that on average shocks last no longer than seven months (either through demand destruction, pricing overshoot or supply response).”
Mr. Sytchev said shares of Stelco have “gone parabolic,” rising 32 per cent year-to-date versus a 4-per-cent gain for the TSX and with U.S. peers about approximately 30 per cent. Those increases have aligned with a jump in HRC prices to US$1,350 per ton from US$800 in December.
“The catalyst for the dynamic is the horrific geopolitical situation in Europe (Russian/Ukrainian slab/iron ore constitute 6 per cent/6 per cent of global trade),” he said. “We are once again in + 2.5 standard deviations when it comes to HRC pricing vs. averages (and in statistical terms, that implies 1% of occurrences in a normal distribution).
“Can HRC go higher? Of course, it can; objectively, recall however that when HRC hit US$1,850/nt in Nov. 2021, STLC shares reached $51.00 level. Now, HRC is at US$1,350/nt while STLC rocketed to $57.00 (FCF generation creates a positive delta).”
Mr. Sytchev said Stelco shares have been tracking HRC pricing “almost perfectly,” reaffirming his view that “we need to see ‘things as they are, not as we want them to.’” Seeing little upside to his updated net asset value estimates, he thinks the shares “are prime for a breather if there is even a semblance of geopolitical normalization.”
While lowering his recommendation, he raised his target to $55 from $48 on “intermittently higher pricing.” The average on the Street is $55.64, according to Refinitiv data.
Following its release of “solid” fourth-quarter financial results and “strong” initial 2022 guidance, BTIG analyst Camilo Lyon sees Lululemon Athletica Inc. (LULU-Q) “well-positioned” to weather the significant affects brought by the COVID-19 pandemic on the retail industry from both a liquidity perspective and a brand perspective.
“We believe LULU is among the few companies that entered the current environment from a position of strength and as such, will exit it stronger,” he said in a research note. “In addition, we believe LULU is a beneficiary of consumers continuing to spend on at-home exercise / workout-related activities in the current COVID-19 environment.
“We believe LULU’s 2023 CAGR [compound annual growth rate] targets (low-teens revenue growth with higher EPS growth) at its investor day remain achievable as well as its goals laid out in its 5-year plan, calling for the company to double sales in men’s and online, quadruple international sales, and continue double-digit growth in women’s and in North America. The company continues to introduce innovative products in its legacy categories as well as expand into new product offerings, which should allow LULU to continue on a path of growth post-pandemic. In addition, we believe LULU’s international expansion efforts, particularly in China, will continue to enhance profitability and expand the brand’s reach.”
After the bell on Tuesday, the Vancouver-based activewear company reported earnings per share for the quarter of US$3.37, above both Mr. Lyon’s US$3.25 estimate and the consensus forecast on the Street of US$3.27. The beat came as revenue grew 23.1 per cent year-over-year, also topping the analyst’s projection (22.9 per cent), and gross margins contracted 0.49 per cent (versus his 0.85-per-cent expectation).
“Revenue growth was balanced across both stores and DTC [direct-to-consumer] with store comps up 32 per cent and digital up 17 per cent,” said Mr. Lyon. “Importantly, consumer demand continues to be robust quarter-to-date which is seen in solid, above consensus FQ1 revenue guidance of 24-26 per cent. Against this backdrop of strong demand, LULU is leaning into its lower-risk core/season-less product (approximately 45 per cent of inventory, up from 40 per cent in FQ3) to ensure it has sufficient inventory on hand (inventory grew 49 per cent in FQ4, up from 22 per cent in FQ3).”
Expecting a “solid” first-quarter of the current fiscal year, Lululemon also announced better-than-anticipated full-year guidance, including revenue of US$1.525-US$1.55-billion, which would represent annual growth of 24-26 per cent, and earnings per share of US$1.38-$1.43.
“While LULU is embedding the continuation of supply chain issues in F1Q22-F3Q22 (gross margins down triple digits every quarter), we believe the gross margin guide could prove conservative should factory production/transit times catch up with demand such that air freight becomes a smaller part of the freight mix, markdowns remain subdued, and select price increases on 10 per cent of SKUs take hold, all of which are underpinned by robust demand,” said Mr. Lyon. “Lastly, LULU is expanding into golf and tennis more directly, which coupled with the recent successful footwear launch (after only one week the Blissfeel is sold out in most sizes in five of six colorways) should expand use cases and drive incremental revenue opportunities, a topic we expect to hear more about at its analyst day on April 20.
“Taken together, LULU posted another solid quarter despite persistent macro/Omicron/transit headwinds. Supported by a solid balance sheet and $1.2-billion in cash, the Board authorized a new $1-billion share buyback underscoring its confidence in the long-term opportunity for the brand.”
With that view and citing its “remarkable consistency of execution and long pathway for both share gains and profit improvements (particularly Asia),” Mr. Lyon raised his target for Lululemon shares to US$491 from US$489, maintaining a “buy” recommendation. The average target on the Street is US$426.14.
Other analysts making target adjustments include:
* Citi’s Paul Lejuez to US$400 from US$350 with a “neutral” rating.
“We believe the current strength of the biz is in part due to a better in stock inventory position as the company is using air freight to secure inventory, which will weigh on gross margins near-term,” he said. “Overall, the secular trends that have benefitted the business for several years (and accelerated during the pandemic) appear to be continuing in F22 (despite multi-year tough comparisons). With shares trading at an F22E EV/EBITDA multiple of almost 24 times (among the most expensive in our universe), we believe the risk/reward is fairly balanced at current levels.”
* BoA Securities’ Lorraine Hutchinson to US$450 from US$420 with a “buy” rating.
“Lululemon’s (LULU’s) accelerating momentum into 1Q and favorable outlook support our view that it gained share during the pandemic and is well positioned for growth,” she said.
* JP Morgan’s Matthew Boss to US$455 from US$450 with an “overweight” rating.
* Deutsche Bank’s Gabrielle Carbone to US$428 from US$410 with a “buy” rating.
* Credit Suisse’s Michael Binetti to US$450 from US$465 with an “outperform” rating.
“While there were no big surprises, management laid out their plan for long-term topline growth driven by manufacturing capacity expansion and market share gains,” he said. “GIL is in a unique position to add capacity over the next 3 years (capex planned at $600-900-million over the next 3 yrs vs the last 3 yrs at $300-million ). Management (and we) expect increased capacity to drive topline growth as the N. American economy reopens and they drive further market share gains (helped by its EDLP positioning). And with many companies looking to near-shore production as a secular trend, GIL’s Central American based operations gives them a proximity advantage versus Asian supply chains. With topline expected to grow 7-10 per cent annually at an 18-20-per-cent EBIT margin, this is an extremely attractive algorithm within the retail landscape.”
Mr. Lejuez thinks the Montreal-based clothing manufacturer’s expectation to increase sales to US$3.6-$3.9-billion by 2024 from US$2.9-billion in fiscal 2021 is “fairly conservative.” He expects the expansion of its Central America facilities and opening of its first production line in its Bangladesh facility by the first quarter of 2023 could push sales of $3.8-billion without price increases.
“GIL’s 2024 outlook of sales between $3.6-3.9-billion and operating margin of 18-20-per-cent implies EPS of $3.30-$4.00 in 2024 vs consensus of $4.00,” he said. “Ultimately we believe this long-term outlook will prove conservative. Our F24 estimate is $4.16.”
Maintaining a “buy” recommendation for Gildan shares, Mr. Lejuez raised his target to US$50 from US$48. The current average is US$50.24.
“Our 2024 outlook has sales growing to $4.1-billion, which we believe remains realistic considering the amount of capacity that GIL is expected to have come online over the coming years,” he said. “We increased our capex expectations which we believe will drive incremental sales beyond 2024 above our previous expectations. As a result, the net of higher capex and higher sales beyond 2024, drives our TP.”
“The company has made several strategic decisions that position them well over the next several years (even beyond F22) to further take market share in the markets they play in. We believe this potential is not yet fully reflected in consensus numbers,”
Elsewhere, National Bank’s Vishal Shreedhar cut his target by $1 to $64.
“GIL’s valuation is attractive as shares are currently trading at 13.8 times NTM [next 12-month] EPS vs. the five-year average of 18.3 times,” said Mr. Shreedhar. “That said, we acknowledge that commodity risk (cotton prices) and worries regarding an economic slowdown are tapering investor enthusiasm (particularly when coupled with GIL’s growth ambitions supported by heightened capex).”
Seeing its outlook having “moderated” after its fourth-quarter results fell short of the Street’s expectations, Canaccord Genuity’ Aravinda Galappatthige downgraded BBTV Holdings Inc. (BBTV-T) to “hold” from “buy.”
After the bell on Tuesday, the Vancouver-based media and technology company reported revenue of $138.8-million, down 8 per cent year-over-year and below the analyst’s $153.9-million estimate. An adjusted EBITDA loss of $0.7-million also missed his forecast (a profit of $1.6-million).
“The weakness in the quarter was predominantly due to lower views as well as the absence of monetization of YouTube shorts, which have grown to represent as much as 20 per cent of BBTV’s aggregate views on the platform,” said Mr. Galappatthige. “Further, Plus Solutions growth was moderated by supply chain issues. The company did, however, lift its cash balance to $30.9-million, up nicely from $25.9-million last quarter, but entirely driven by a positive change in working capital.”
The analyst now sees BBTV’s near-term as “notably softer,” noting: “With low visibility on when YouTube would actually initiate broader monetization for YouTube shorts, and the audience/views mix continuing to trend in that direction, we see a far more moderated outlook for F2022. In fact, management alluded to further declines in Base Solutions in Q1/22 and Q2/22. Moreover, while Plus Solutions are off to a strong start in 2022 with 60 per cent growth in January, given the supply chain pressure likely sustaining through much of the year, we now only expect 30-per-cent growth in F2022 vs our previous expectation of 50 per cent. On account of these factors, management has withdrawn its guidance around positive EBITDA in F2022.”
After reducing his financial projections and accounting for “the sharp sell-off in smallcap growth names in the market,” Mr. Galappatthige cut his target for BBTV shares to $3.50 from $11. The average target on the Street is $10.29.
“Looking at some of the Canadian comps, low single-digit multiples on net revenue is not uncommon in present market conditions,” he said. “We also suspect that the market would be incrementally conservative in valuing BBTV owing to expectations around ongoing revenue declines over H1/22 and lower visibility with respect to the revenue trajectory in H2, not to mention profitability. In fact, our revised forecasts now indicate adj EBITDA level losses through much of F2023. Finally, we are also cognizant of the fact that with its $10.55 strike price (vs current share price of $3.30) the converts ($37.3-million) now very much represent debt, together with the ($28.4-million) UFA note. We have thus downgraded the stock.”
Elsewhere, CIBC World Markets’ Robert Bek cut his target to $9 from $11 with an “outperformer” rating, while Scotia’s Jeff Fan trimmed his target to $10 from $10.50 with a “sector outperform” recommendation.
“We decrease our price target ... reflecting the revenue trends in Base Solutions,” said Mr. Bek. “The segment remains a backbone for BBTV, providing a material source of funding and momentum for Plus Solutions, which requires time to become a self-funding segment. In our view, the stock remains attractive relative to its material opportunity to arrive at profitable growth over the next few years, as the company remains well positioned to add value to video creators across multiple platforms and content types. Though we continue to expect the shares to appreciate eventually as the company company executes on its Plus Solutions strategy, risks in the story have increased.”
National Bank Financial analyst Richard Tse expressed skepticism over the claim by Thinkific Labs Inc. (THNC-T) management that its restructuring will not materially impact the business.
“We think it’s only reasonable to assume it might cause some disruption — which increases the risk profile,” he said.
On Tuesday, the Vancouver-based tech company, which provides a platform for entrepreneurs and businesses to create and run online courses, announced the elimination of 100 jobs, or 20 per cent of its workforce, following “a rigorous review of our organizational structure,” and adding the changes would “increase efficiency and lower costs without impacting our growth trajectory.”
“Looking back, strong growth had Thinkific scaling its workforce to 499 today from 270 employees at the end of Q1 2021,” said Mr. Tse. “However, as part of an annual strategic review, the Company uncovered inefficiencies which led to the decision to reduce its workforce by 100 employees (approximately 20 per cent). Based on our discussions with Management this evening, those reductions will be made across general and administrative, customer support, and (limited) reductions in research and development and sales and marketing. In addition, the Company is also streamlining some layers of management as part of the overall restructuring.”
The analyst expects annual savings of $10-million offset by some reinvestment of those savings. In all, he sees potential net savings of between $7-$8-million going forward.
“With respect to the related restructuring charge, it’s estimated that $3-million will be booked in Q1 with savings from the restructuring expected to improve Adj. EBITDA cumulatively by $6-$7-million from Q2 F22 to Q4 F22 with the majority of those savings hitting in the back half of the year,” he said. “The bulk of the savings will come through in COGS and G&A with the costs savings in COGS expected to help Thinkific reach its target of 80-per-cent gross margin for its software subscription business by the end of F22.”
To account for the increased risk, Mr. Tse reduced his target for Thinkific shares to $6 from $12, keeping an “outperform” rating. The average is $10.84.
“While unfortunate, the Company’s rapid growth in recent years likely extended it from an OPEX perspective; and with growth moderating post-COVID, its annual strategic review likely uncovered those inefficiencies,” he said. “Trading at 1.0 times EV/S on F22, the risk-to-reward is compelling despite the above-noted actions. We continue to see Thinkific as an early leader in the online learning market with a competitive platform for content creators. With incremental growth drivers such as Thinkific Payments and Thinkific App Store, we still see a meaningful runway of growth from new customers to ARPU expansion for existing customers”
Elsewhere, Canaccord Genuity’s Robert Young trimmed his target to $7.50 from $9 with a “buy” rating.
“We believe it is a step in the right direction as Thinkific focuses on returning to pre-COVID growth of 60-per-cent-plus in the medium term with a lower cash burn,” he said. “That said, we believe the company’s remodeled go-to market strategy targeting the mass market implies a near-term execution risk. In addition, we believe the recent stock price decline may be a headwind to stock-based compensation in an environment where tech talent is facing a global shortage. We remain conservative in our top-line growth estimates but are reducing our EBITDA loss estimates. At these levels, Thinkific trades at a significant discount to peers, and 60 per cent of its implied market cap is in cash.”
Cargojet Inc.’s (CJT-T) expanded long-term strategic relationship with DHL Express Division, an affiliate of Deutsche Post DHL Group, has “a plethora of strategic benefits locking in revenue for seven years, deepening its ties with one of its largest clients, and growing the high-margin ACMI business,” said Canaccord Genuity analyst Matthew Lee.
Under the new five-year extendable deal to provide air-transportation services for DHL Network Operations, announced Tuesday, the German company received an option to buy up to 9.5-per-cent equity stake in the Canadian firm over a period of seven years, at a price of $158.92 each, with vesting tied to the delivery of $2.3 -billion in business volume during the term.
“In our view, the seven-year length of the deal is somewhat unusual given the average length of an ACMI deal is 3-5 years,” said Mr. Lee. “We believe this reflects DHL’s confidence in cargo demand going forward and reinforces our view that long-term trends for CJT remain healthy, driven by ecommerce growth and rising long-haul, international demand.”
He also thinks the deal “largely justifies” Cargojet’s capital spending plan and gives investors clarity into the decision to significantly expand its fleet.
“Post this transaction, we expect that CJT will have only four planes within their scheduled fleet plan uncommitted, which significantly de-risks the thesis,” he said.
Maintaining a “buy” rating. Mr. Lee raised his target to $250 from $240, to reflect a “substantially elevated revenue forecast and a slightly higher multiple ... associated with improved revenue visibility.” The average is $238.25.
“We believe that the company’s improved growth trajectory (14-per-cent F21-F24 CAGR), added downside protection, and position within the industry largely justify our raised multiple,” he said.
Others making changes include:
* Scotia Capital’s Konark Gupta to $215 from $195 with a “sector perform” rating.
“We are encouraged by the long-term DHL agreement announced [Tuesday] which not only de-risks half of the $1B aircraft capex over the next five years, but also slightly improves our outlook,” he said. “In addition, it validates CJT’s strategy to invest in the larger, more expensive B777 freighters, which will commercialize for the first time in the coming years.”
* RBC’s Walter Spracklin to $302 from $311 with an “outperform” rating.
“When CJT announced its Q4 results 3 weeks ago, management disclosed a significant capex spend but at the time was not in a position to disclose the contract that prompted it. That contract has now been signed: a 5+2yr deal with DHL (incl. warrants that ensure $2.3-billion in minimum revenue). We had already assumed utilization from this capacity; but we see lower risk now with the deal in place and clear room for additional growth upside,” said Mr. Spracklin.
* TD Securities’ Tim James to $230 from $210 with a “buy” rating.
“We believe that Cargojet deserves a premium valuation relative to comparables, due to its above-average historical growth, prudent financial leverage, strong forecast margins, and competitive position within an industry that is expected to continue benefiting from a lack of cargo capacity. We believe that Cargojet’s valuation multiples will benefit from growth in air-cargo demand and the lack of belly capacity on commercial passenger aircraft,” said Mr. James.
* CIBC’s Kevin Chiang to $236 from $217 with an “outperformer” rating.
* Acumen Capital’s Nick Corcoran to $295 from $300 with a “buy” rating.
Touting the potential stemming from the release of its three-year strategic plan, Raymond James analyst David Quezada upgraded Xebec Adsorption Inc. (XBC-T) to “outperform” from “market perform.”
“As highlighted at the company’s Investor Day, XBC is targeting a trio of significant energy transition opportunities including RNG, hydrogen, and carbon capture, expected to drive significant growth in coming years with a 40-per-cent projected CAGR [compound annual growth rate] out to 2024 as per the company’s strategic update,” he said. “We also believe management projected confidence with respect to the ramp up of the standardized Biostream RNG upgrading unit —something we consider to be a key driver for the business.”
Mr. Quezada maintained a $3 target, a penny above the consensus, for the Quebec-based company’s shares.
“In recent months, we have noted our concerns on cost inflation and supply chain challenges as Xebec looks to significantly increase Biostream manufacturing volumes and roll out its hydrogen hub strategy,” he said. “That said, we felt management projected confidence on these respective initiatives and believe the company’s new CEO and other key members of senior management are experienced operators able to execute on this strategy. In light of this, as well as the magnitude of the above noted opportunities, which we do not believe are reflected in XBC’s valuation.”
In other analyst actions:
* In response to a modest guidance reduction, National Bank’s Rupert Merer reduced his target for Anaergia Inc. (ANRG-T) to $18 from $20 with a “sector perform” rating, while Scotia’s Justin Strong cut his target to $19 from $29 with a “sector outperform” rating. The average is $24.50.
“We believe ANRG is well positioned to pursue its strategy and create shareholder value. Our thesis and recommendation are based on ANRG’s (1) strong growth outlook, (2) enticing valuation with significant growth upside above our target price, (3) portfolio of proprietary technologies, and (4) first mover advantage in the RNG space. However, in light of the reduced guidance, rolling our valuation year to 2024, and reevaluating our target multiples we are reducing our target price,” said Mr. Strong.
* Scotia Capital’s Michael Doumet increased his Autocanada Inc. (ACQ-T) target to $48 from $47.50, remaining below the $55.34 average, with a “sector outperform” rating.
“We attended a company offsite with other sellside analysts,” said Mr. Doumet. “The event showcased the breadth of talent in the organization and gave us a closer look at what we view as a best-in-class operation, particularly within used vehicle, F&I, collision, data analytics, etc. The company has built a scalable and repeatable business model that it will look to scale through M&A. The company also discussed its expansion plans for RightRide, Used Digital, and Collision, which we think are hidden gems given the potential for exponential growth (5 times to 10 times in five years) and significant value creation. In our view, there is a real potential for AutoCanada’s EBITDA to exceed $300 million in 2022 (before M&A), and beyond, even as GPUs normalize. Further, the company has significant dry powder and is actively pursuing acquisitions and repurchasing shares. Its significant earnings growth opportunity stands in sharp contrast to its cheap valuation: ACQ is one of our best idea small caps.”
* After resuming coverage following its $3.1-billion stock offering, Desjardins Securities analyst Doug Young raised his target for Bank of Montreal (BMO-T) shares to $163 from $161 with a “buy” rating, while Scotia’s Meny Grauman cut his target to $168 from $169 with a “sector outperform” rating. The average is $167.74.
“The issuance was not a surprise, as it was part of management’s initial financing plans for the Bank of the West (BoW) acquisition,” Mr. Young said. “However, the timing was earlier than we expected, leading us to slightly reduce our FY22 EPS estimates. We also took the opportunity to update our model, resulting in a slight increase in our FY23 EPS estimates.”
* Scotia’s David Weiss assumed coverage of Coveo Solutions Inc. (CVO-T) with a “sector perform” rating and $14 target, down from the firm’s previous $16 target. The average is $16.
“Our thesis on the company remains that we believe Coveo’s shares offer investors a way to participate in the trend for organizations to provide all stakeholders with more relevant and timely information, benefiting from the theme of digital information growth and the need to organize, search, and find relevance,” he said.
“We believe Coveo will continue to deliver strong double-digit top-line growth over our forecast horizon, with continued demand for cloud-based search and relevance software from both new and existing customers.”
* Though its fourth-quarter 2022 results topping the Street’s expectations, BMO Nesbitt Burns’ Thanos Moschopoulos cut his target for shares of D2L Inc. (DTOL-T) to $16 from $19, keeping a “market perform” rating, to reflect “the year-to-date multiple compression across the tech sector.” Others making target changes include: TD Securities’ Daniel Chan to $20 from $24 with a “buy” rating, Eight Capital’s Christian Sgro to $20 from $22 with a “buy” rating and Raymond James’ Brian Peterson to $16 from $22 with an “outperform” rating. The average is $20.33.
“We think the stock has potential, given its valuation relative to growth and our view that the spending environment in D2L’s core markets is likely to remain healthy over the coming months. Our rating is a relative call; we prefer other stocks in our coverage universe (we’d also like better comfort on the sustainability of D2L’s recent competitive traction),” said Mr. Moschopoulos.
* National Bank’s Richard Tse cut his target for Farmers Edge Inc. (FDGE-T) to $3 from $4 with a “sector perform” rating. The average is $3.93.
“All in, continued execution challenges and high cash burn combined with a departing CEO makes for a stock that will likely mark time in the near term despite an ambitious plan. And when it comes to that ambitious plan, the incremental additions of product and markets has spread the overall strategy thin from our vantage point,” he said.
* Following its Investor Day event, CIBC’s Robert Catellier bumped his Keyera Corp. (KEY-T) target to $36, above the $34.69 average, from $35 with an “outperformer” rating. Others making changes include: National Bank’s Patrick Kenny to $37 from $36 with an “outperform” rating, Raymond James’ Michael Shaw to $34 from $33 with an “outperform” rating, TD Securities’ Linda Ezergailis to $37 from $36 with a “buy” rating and RBC’s Robert Kwan to $35 from $34 with an “outperform” rating.
“Keyera did a good job detailing what investors can expect when it comes to capital allocation and, specifically, the reiteration of its commitments to maintain leverage in the 2.5-3.0 times net debt/EBITDA range as well as its aim to fund growth without accessing external equity,” said Mr. Kwan. “Although investors may continue to take a somewhat cautious approach to the construction of the KAPS project given the current inflationary environment, we believe investors comfortable with the project will look to the stock as an attractive way to play upside from potential growth in Western Canada Sedimentary Basin volumes in the coming years.”
* After a management meeting and tour of its Palo Alto satellite facility, RBC Dominion Securities’ Ken Herbert raised his target for shares of Maxar Technologies Inc. (MAXR-N, MAXR-T) to US$48 from US$42 with an “outperform” rating. The average is US$44.
“The facility is busy, with 15 satellites in production (including two WV Legion satellites),” he said. “We met with Chris Johnson, SVP of Space Program Delivery. The company is confident that the geosat market will re-set at 12–15 satellite orders/year, and it expects to maintain its 30-per-cent share. Management is focused on the [Electro-Optical Commercial Layer] contract announcement (expected any day) and the initial WV Legion launch.”
* Canaccord Genuity’s Robert Young cut his WeCommerce Holdings Ltd. (WE-X) target to $10, below the $16 average, from $12.50 with a “buy” rating, while TD Securities’ Daniel Chan trimmed his target to $16 from $22 also with a “buy” rating.
“We believe that WeCommerce could benefit from increased M&A activity as target valuations normalize,” said Mr. Chan.