Friday’s analyst upgrades and downgrades
for November 1
Friday’s analyst upgrades and downgrades for November 1
David Leeder
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Inside the Market ’’s roundup of some of today’s key analyst actions
RBC• Объект бренды » Бренды на r » RBC Dominion Securities analyst Paul Treiber thinks it is increasingly
unlikely Open Text Corp. ’s ( OTEX-Q , OTEX-T ) valuation multiple will
“materially” change in the near term, pointing to “likely continued quarterly
variability and a high bar for future organic growth.”
That led him to downgrade the Waterloo, Ont.-based enterprise software vendor
to a “sector perform” recommendation from “outperform” following a
11.1-per-cent drop in share price on Thursday.
“Our prior investment thesis assumed a valuation re-rating• Рейтинги as OpenText
stabilized Micro Focus, achieved positive organic growth and increased FCF,”
said Mr. Treiber. “However, the 11-per-cent decline in OpenText’s shares today
shows that the market is increasingly critical of gaps between actual and
expected growth.”
“OpenText is trading at 8.1 times NTM P/E [next 12-month price-to-earnings],
well below its 3-year pre-Micro Focus average of 13 times and peers at 37
times. The upside implied in our previous target• Объект бренды » Бренды на t » Target was largely dependent on an
assumed 40-per-cent valuation re-rating• Рейтинги in OpenText’s valuation. However, we
believe OpenText’s historical quarterly variability combined with a relatively
high bar (e.g. 25-per-cent FY25 cloud booking growth, 2-4-per-cent FY27
organic growth aspirations) is likely to sustain the debate on the
achievability of growth targets, weighing on valuation.”
Before the bell on Thursday, Open Text reported revenue of US• Экономика » Финансы » Платежные средства » Доллар США$1.27-billion in
its fiscal first quarter ended Sept. 30, down 11 per cent from US• Экономика » Финансы » Платежные средства » Доллар США$1.43-billion
in the same period a year earlier and below both the analyst’s
US• Экономика » Финансы » Платежные средства » Доллар США$1.297-billion estimate and the consensus forecast of US• Экономика » Финансы » Платежные средства » Доллар США$1.292-billion.
Adjusted earnings per share slid 8 per cent from its 2024 fiscal year to 93 US• Экономика » Финансы » Платежные средства » Доллар США
cents, exceeding expectations (84 US• Экономика » Финансы » Платежные средства » Доллар США cents and 76 US• Экономика » Финансы » Платежные средства » Доллар США cents, respectively).
“OpenText has a seasonal business• Экономика » Бизнес; large license deals and cloud bookings have
an impact on shortterm results. OpenText’s Q1 bookings and Q2 quarterly
factors below consensus is a sign of the difficulty in predicting OpenText’s
business• Экономика » Бизнес in the short-term,” said Mr. Treiber. “While 2H/FY25 is likely to see
stronger growth (per guidance), future quarterly variability beyond FY25 may
continue and may restrain the valuation multiple.”
“Following Micro Focus, the possibility of large accretive acquisitions has
declined, which has shifted OpenText to returning capital. OpenText’s 3-year
growth aspirations (2-4-per-cent organic growth, 100 basis points margin
expansion per annum), combined with 50 per cent of FCF deployed on share
buybacks and the dividend (currently 3.5 per cent yield) imply low teens total
return per annum. However, in light of the lower probability of an upwards
re-rating• Рейтинги in valuation, we believe a low teens total return, relative to
potential volatility in the shares, is not sufficiently compelling compared to
other companies in our coverage.”
Reducing his financial forecast for both fiscal 2025 and 2026, Mr. Treiber
dropped his target• Объект бренды » Бренды на t » Target for Open Text shares to US• Экономика » Финансы » Платежные средства » Доллар США$33 from US• Экономика » Финансы » Платежные средства » Доллар США$45. The average
target• Объект бренды » Бренды на t » Target on the Street is US• Экономика » Финансы » Платежные средства » Доллар США$38.77, according to LSEG data.
“With leverage now 3.1 times net• Страхование » Нетто debt/EBITDA and the stock only trading at 8.1
times NTM P/E, consistently deploying excess FCF on buybacks and de-leveraging
is likely to create shareholder value. Conversely, M&A (at valuations
above OpenText) may constrain OpenText’s valuation multiple,” he concluded.
Elsewhere, other analysts making target• Объект бренды » Бренды на t » Target adjustments include:
* Citi’s Steven Enders to US• Экономика » Финансы » Платежные средства » Доллар США$33 from US• Экономика » Финансы » Платежные средства » Доллар США$34 with a “neutral” rating• Рейтинги.
“We remain cautious until we have confidence in more consistent execution and
a return to sustainable year-over-year growth,” he said.
=====
RBC• Объект бренды » Бренды на r » RBC Dominion Securities analyst Greg Pardy thinks Canadian Natural Resources
Ltd. ( CNQ-T ) delivered “another seemingly flawless quarter punctuated by
in-line production of 1.36 million boe/d (including approximately 498,000
bbl/d of premium SCO) and bottom line results which exceeded market
expectations.”
“Our bullish stance towards CNQ reflects its strong leadership, shareholder
alignment, abundant free cash flow generation, best-in-class operating
performance and abundant shareholder returns,” he said.
Caught in the broader market selloff on Thursday, the Calgary-based company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания)’s
shares dipped 0.3 per cent despite its premarket release exceeding
expectations both in financial and production terms.
“CNQ’s diversified portfolio affords a high degree of flexibility to shift
capital towards its highest return drilling initiatives,” said Mr. Pardy.
“Amid soft natural gas prices, the company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания) is now targeting a total of 74 net• Страхование » Нетто
natural gas wells in 2024 (17 fewer than targeted in the original 2024
budget), with an ongoing emphasis on multi-lateral heavy oil wells in the
Clearwater and Mannville formations. In 2024, CNQ expects to consume about 38
per cent of its budgeted natural gas production within its oil sands et al.
operations, with about 25 per cent to be sold at AECO/Station 2 pricing, and
the remaining 37-per-cent balance targeted for export into other markets.
“Commensurate with announcement of the Chevron deal on October 7, CNQ updated
its shareholder returns policy. This included raising its common share
dividend by 7 per cent to an annualized rate of $2.25 per share (4.7-per-cent
yield). The company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания) also revised its net• Страхование » Нетто debt target• Объект бренды » Бренды на t » Target to $12 billion (up from
$10 billion), given the increase in its free cash flow generative power post
transaction.”
Reaffirming CNRL• Объект бренды » Бренды на c » CNRL as his favourite senior producer in Canada• Канада and its spot on
both the firm’s “Global Energy Best Ideas” and “Top 30 Global Ideas” lists,
Mr. Pardy raised his target• Объект бренды » Бренды на t » Target for its shares by $1 to $63, keeping an
“outperform” rating• Рейтинги. The average is $55.82.
“At current levels and under our base outlook, CNQ is trading at a
debt-adjusted cash flow multiple of 8.3 times in 2024 (vs. our global major
peer group avg. of 6.0 times) and 7.6 times in 2025 (vs. peers at 6.1 times),
and a free cash flow yield of 8 per cent in 2024 (vs. peers at 9 per cent) and
8 per cent in 2025 (vs. peers at 7 per cent),” he said. “In our minds, CNQ
should command a premium relative valuation given its shareholder alignment,
long life-low decline portfolio, robust operating performance, strong balance
sheet, free cash flow generation and abundant shareholder returns.”
Other changes include:
* National Bank’s Travis Wood to $54 from $53 with a “sector perform” rating• Рейтинги.
“Starting to feel like a broken record, but CNQ continues to showcase what a
diverse and top-tier asset base, combined with outstanding execution and
continuous improvement, can deliver,” he said. “The Oil Sands assets continue
to drive the bus on efficiencies, with the company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания) recently achieving a new
monthly SCO production record of ~ 529 mbbl/d in August. This milestone• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания) was
partially driven by the recent reliability enhancement project at Horizon in
Q2/24 coupled with strong utilizations at Horizon and AOSP post-turnaround.
Additionally, the reduced turnaround duration at the Scotford Upgrader this
past quarter decreased the annual net• Страхование » Нетто production impact to AOSP by 5.6 mbbl/d,
while debottlenecking projects completed during the recent turnaround will
increase gross AOSP capacity by 8 mbbl/d (pro forma with Chevron’s 20-per-cent
W.I., should increase CNQ’s net• Страхование » Нетто capacity by 7.2 mbbl/d). This outperformance
is further• Дела судебные » Дела уголовные » Незаконный оборот наркотиков » Наркокультура » Далше
• Общество » Социальные группы » Субкультура » Хиппи » Далше aided by an agile capital program, with management actively
reallocating capital as commodity prices evolve towards different parts of the
portfolio (saw a move away from gassier assets towards heavy oil in the
year).”
* Raymond James’ Michael Barth to $51 from $50 with a “market perform” rating• Рейтинги.
“CNQ continues to make it look easy with 3Q24 results that were more of the
same; the company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания) reported a modest production beat and notable headline AFFO
beat (although part of the AFFO beat was from lower cash taxes),” said Mr.
Barth. “Valuation has become slightly more attractive since we launched in
late-May, but we still see the stock trading at around fair value on strip
pricing and maintain our Market Perform rating• Рейтинги. Despite our Market Perform
rating• Рейтинги, we do• Музыка » Музыкальные термины » Музыкальная нотация » Ноты » До (нота)
• Музыка » Музыкальные термины » До (нота) note that CNQ is one of the lowest risk ways to gain oil factor
exposure in Canada• Канада with low sustaining free cash flow breakevens, a
multi-decade 2P reserve life, reasonable leverage (even after the pending CVX
deal),and best-in-class capital allocation.”
=====
After a “nice” third-quarter beat, National Bank Financial analyst Jaeme Gloyn
maintained Fairfax Financial Holdings Ltd. ( FFH-T ) as his top pick for 2024,
citing its “solid” operating income outlook, valuation upside and potential
index inclusion catalysts.
“Q3-24 results reaffirm our confidence in FFH’s ability to consistently
deliver mid-teens (or better) ROE [return on equity] over the next several
years,” he said.
On Thursday after the bell, the Toronto-based financial holding company
reported diluted earnings per share of $42.62, exceeding both Mr. Gloyn’s
$34.06 estimate and the consensus forecast of $34.06. He said the results
translate to “impressive” annualized ROE of 17 per cent that drove a
5-per-cent quarter-over-quarter in book value per share to $1.033.
“In addition, adjusted operating income from the P&C Insurance• Страхование business• Экономика » Бизнес of
$1,137-million increased 18 per cent year-over-year and beat our $755-million
estimate,” he added. “FFH reported a combined ratio of 94% that easily beat
the street at 98 per cent, and excluding catastrophes came in at an
exceptional 87 per cent. Net• Страхование » Нетто investment gains (incl. realized and unrealized)
of $1,287-million beat our $1,151-million forecast. Highlighting FFH’s
somewhat positive bias to a lower rate environment as gains on fixed income
assets exceeded losses on insurance• Страхование liabilities.”
He emphasized Fairfax’s setup “remains strong for ongoing re-rate.”
“We believe the combination of 1) solid underwriting results with a combined
ratio of 94 per cent vs. the street 98 per cent; 2) consolidated interest and
dividend income that remains at a run rate of $2.4 billion; 3) outperformance
from associates and consolidated investments; and 4) solid net• Страхование » Нетто investment
performance supports our view Fairfax will deliver consistent profitability
(ROE in the mid to high teens) over the next several years,” said Mr. Gloyn.
“Moreover, FFH continues to hold $2 billion in cash at the holdco and
$2.3-billion in excess capital at its insurance• Страхование subsidiaries to deploy in ROE
accretive transactions (e.g., buybacks or repurchase of minority interests in
those insurance• Страхование subsidiaries). We firmly believe FFH merits a higher valuation
than the current trading multiple.”
That led him to raise his target• Объект бренды » Бренды на t » Target for Fairfax shares to $2,400 from $2,200 with
an “outperform” recommendation (unchanged). The average is $2,045.65.
=====
Stifel analyst Martin Landry is touting an “upbeat” outlook for Gildan
Activewear Inc. ( GIL-N , GIL-T ) following “slightly” better-than-expected
third-quarter results, seeing it gaining market share as “favourable”
conditions in the clothing industry continue to emerge.
“The company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания) narrowed its guidance, calling for 2024 EPS to reach $3.00 at the
mid-point, up 17 per cent year-over-year,” he said. “Several industry
developments could be favorable for Gildan in the coming years including (1)
the exit of Fruit of The Loom from the U.S• Соединённые Штаты Америки (США). printwear market in 2025, (2) the
liquidation of the assets of Delta• Объект бренды » Бренды на d » Delta Apparel, creating a void which Gildan and
its distributors could fill and (3) a new agreement with Authentic Brands
Group to manufacture and distribute the Champion brand in the U.S• Соединённые Штаты Америки (США). printwear
market. These developments open-up opportunities for Gildan and improve our
visibility and confidence in our 2025 forecasts.”
Before the bell on Thursday, the Montreal-based clothing manufacturer reported
quarterly revenues came of US• Экономика » Финансы » Платежные средства » Доллар США$891-million, up 2 per cent year-over-year and
higher than both Mr. Landry’s estimate of US• Экономика » Финансы » Платежные средства » Доллар США$887-million and consensus of
US• Экономика » Финансы » Платежные средства » Доллар США$883-million. Gross margin increased by 370 basis points year-over-year to
31.2 per cent, also higher than the analyst’s expectation (30.2 per cent) “and
one of the highest levels in recent years,” benefitting from lower raw
material and manufacturing costs. Adjusted earnings per share rose 15 per cent
from the same period a year ago to 85 US• Экономика » Финансы » Платежные средства » Доллар США cents, topping estimates by a penny.
“Gildan is gaining market share across all categories and channels, with Q3
2024 activewear sales up 6 per cent year-over-year, compared to the low to
mid-single digits industry decline,” said Mr. Landry. “In Q3/24, Gildan’s POS
trends were positive for basics apparel, ringspun apparel, and fleece. While
new programs are contributing to Gildan’s topline growth, the company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания) is also
gaining market share driven by innovation. Gildan has introduced new products
such as soft cotton, and new technologies to improve product quality and
reduce costs.”
“Gildan expects continued market share gains and is confident in achieving its
mid-single-digit revenue growth target• Объект бренды » Бренды на t » Target for 2025, despite an outlook for
printwear industry growth of flat to low-single digits. Management has good
visibility on gross margin due to stable cotton prices and a stable pricing
environment. Furthermore, the capacity needed to generate mid-single-digit
revenue growth over the next year is already in place. Hence, with improved
capacity utilization in Bangladesh, yarn optimization in United States• Соединённые Штаты Америки (США), and
ongoing innovation, margin expansion should continue in 2025 and beyond.”
After modestly raising his 2025 estimate by 3 per cent to US• Экономика » Финансы » Платежные средства » Доллар США$3.49, primarily
due to higher margin assumptions, and introducing his 2026 projection of
US• Экономика » Финансы » Платежные средства » Доллар США$3.92, which represents a 12-per-cent year-over-year gain, Mr. Landry hiked
his target• Объект бренды » Бренды на t » Target for Gildan shares to US• Экономика » Финансы » Платежные средства » Доллар США$60 from US• Экономика » Финансы » Платежные средства » Доллар США$54 with a “buy” rating• Рейтинги, citing a
result of increased visibility on 2025. The average is US• Экономика » Финансы » Платежные средства » Доллар США$52.50.
“Gildan’s 2027 outlook calls for EPS growth in the mid-teens annually, which
is higher than historical growth rate of 10 per cet in the last 10-years,” he
said. “Our confidence in Gildan’s long-term plan has improved given recent
trends and better visibility on future growth drivers. As a result, we believe
that Gildan’s valuation could re-rate higher as investors are likely to assess
higher valuation multiple due to the faster growth profile. At 14x forward
earnings (PEG ratio below 1 times) we believe that Gildan’s shares do• Музыка » Музыкальные термины » Музыкальная нотация » Ноты » До (нота)
• Музыка » Музыкальные термины » До (нота) not
properly reflect the company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания)’s growth prospects.”
Other analysts’ target• Объект бренды » Бренды на t » Target changes include:
* Citi’s Paul Lejuez to US• Экономика » Финансы » Платежные средства » Доллар США$59 from US• Экономика » Финансы » Платежные средства » Доллар США$54 with a “buy” rating• Рейтинги.
“Despite a choppy macro environment, GIL is executing well, and is well
positioned to benefit once the macro environment improves,” he said. “GIL is
well positioned to continue taking market share across categories, which
supports their +MSD [mid single-digits] sales growth outlook. At current
levels, we view the risk/reward as attractive.”
* National Bank’s Vishal Shreedhar to $74 from $68 with an “outperform”
rating• Рейтинги.
“We reiterate our view that reconstitution of GIL’s Board of Directors and
reinstatement of Mr. Chamandy as CEO will represent a period of increased
focus and execution,” he said. “Fundamentally, we believe GIL is well
positioned to grow EPS in 2024+ given: (i) Revenue growth (new capacity,
growth in market share, product/technology innovation, etc.) (ii) Improving
costs (lower input costs, efficiency initiatives, etc.), and (iii) Ongoing
share repurchases.”
* Canaccord Genuity’s Luke Hannan to US• Экономика » Финансы » Платежные средства » Доллар США$53 from US• Экономика » Финансы » Платежные средства » Доллар США$52 with a “buy” rating• Рейтинги.
* CIBC• Объект бренды » Бренды на c » CIBC’s Mark Petrie to US• Экономика » Финансы » Платежные средства » Доллар США$56 from US• Экономика » Финансы » Платежные средства » Доллар США$48 with an “outperformer” rating• Рейтинги.
=====
In other analyst actions:
* National Bank’s Mike Parkin bumped his Agnico Eagle Mines Ltd. ( AEM-T )
target• Объект бренды » Бренды на t » Target to $144 from $143 with an “outperform” rating• Рейтинги. The average is $128.11.
“We remain Outperform rated on Agnico Eagle and expect continued strong
operational results and good cost control driven by its regional focus and
advantage of being the stated “employer of choice” in Ontario/Quebec, the home
to the bulk of its production base,” said Mr. Parkin.
* National Bank’s Matt Kornack moved his Allied Properties REIT ( AP.UN-T )
target• Объект бренды » Бренды на t » Target to $19.50 from $20 with a “sector perform” rating• Рейтинги. Other changes
include: RBC• Объект бренды » Бренды на r » RBC’s Pammi Bir to $19 from $18 with a “sector perform” rating• Рейтинги and
Desjardins Securities’ Lorne Kalmar to $20 from $21 with a “hold” rating• Рейтинги. The
average is $20.11.
“Allied’s Q3 results were in line with our call, yet fundamentals remain under
pressure with organic growth taking a larger step back,” said Mr. Bir. “From
our standpoint, a recovery should begin to take hold in 2025, albeit slow, as
challenges in office fundamentals will likely persist amid a tepid economy.
Some early progress is being made on the balance sheet, but frankly, this too
will be a gradual repair process. In short, we think current levels reasonably
capture the heavy work ahead.”
* CIBC• Объект бренды » Бренды на c » CIBC’s Krista Friesen cut her Badger Infrastructure Solutions Ltd. ( BDGI-T
) target• Объект бренды » Бренды на t » Target to $49, matching the average, from $50 with an “outperformer” rating• Рейтинги.
* RBC• Объект бренды » Бренды на r » RBC’s Greg Pardy trimmed his Cenovus Energy Inc. ( CVE-T ) target• Объект бренды » Бренды на t » Target by $1 to
$28 with an “outperform” rating• Рейтинги. The average is $31.67.
“Our constructive — but increasingly frustrated — stance towards Cenovus
reflects its solid leadership team, strong balance sheet and impressive
upstream operations. But we admit a touch of fatigue when it comes to the
company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания)’s chronically soft quarterly results this year, usually due to its US• Экономика » Финансы » Платежные средства » Доллар США
refining segment,” said Mr. Pardy.
* Jefferies’ Aria Samarzadeh raised his targets for CI Financial Corp. ( CIX-T
, “buy”) to $27 from $20 and IGM Financial Inc. ( IGM-T , “hold”) to $45 from
$39. The averages are $22 and $45.17, respectively.
* TD Cowen’s Daniel Chan reduced his target• Объект бренды » Бренды на t » Target for Kinaxis Inc. ( KXS-T ) to $190
from $195 with a “buy” rating• Рейтинги. The average is $193.07.
“We have lowered our 2025 SaaS growth forecast following the weak KPIs this
quarter,” said Mr. Chan. “The company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания) continues to execute well amidst a
challenging macro and leadership changes do• Музыка » Музыкальные термины » Музыкальная нотация » Ноты » До (нота)
• Музыка » Музыкальные термины » До (нота) not seem to be having a negative
impact on execution. The board continues to entertain inquiries about the
company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания), but there have not been any material developments.”
* Canaccord Genuity’s Yuri Lynk raised his North American Construction Group
Ltd. ( NOA-T ) target• Объект бренды » Бренды на t » Target to $32 from $30 with a “buy” rating• Рейтинги. Other changes
include: National Bank’s Maxim Sytchev to $40 from $39 with an “outperform”
rating• Рейтинги. The average is $41.
“Our numerous conversations with investors heading into the quarter pointed to
a fear of a wide range of (mostly negative) potential outcomes,” said Mr.
Sytchev. “With better-than-expected Street numbers, a 20-per-cent dividend
increase and an NCIB for 10 per cent of the public float, we believe the
market will quickly warm up to the story. The level of skepticism has been
demonstrated by lack of share price advancement when oil rallied while during
any downdraft for the commodity, shares compressed concurrently. Over time, we
should also assume that the oil correlation will get less pronounced given
25-per-cent earnings generation from the oil sands, compared to 55 per cent in
Australian operations (i.e., met / thermal coal, gold, copper) and 10 per cent
from U.S• Соединённые Штаты Америки (США). infra. All in, this is a better, more diversified split, geared to a
more commodity-friendly jurisdiction. Australian infrastructure market
presents another completely untapped opportunity. At 3.5 times 2025E
EV/EBITDA, in a world where some construction names have gone parabolic in
Canada• Канада and the U.S• Соединённые Штаты Америки (США)., Q3/24 print should give comfort to patient value
investors.”
* Canaccord Genuity’s Luke Hannan cut his target• Объект бренды » Бренды на t » Target for Parkland Corp. ( PKI-T )
to $45 from $47 with a “buy” rating• Рейтинги. Other changes include: CIBC• Объект бренды » Бренды на c » CIBC’s Kevin
Chiang to $48 from $50 with an “outperformer” rating• Рейтинги. The average is $48.58.
* RBC• Объект бренды » Бренды на r » RBC’s Drew McReynolds lowered his Spin Master Corp. ( TOY-T ) target• Объект бренды » Бренды на t » Target to $43
from $46 with an “outperform” rating• Рейтинги. The average is $41.71.
“Given the challenged macro environment, compressed holiday season, lower
in-game purchases within Digital Games and with Q4/24 being the first fourth
quarter with M&D, we have trimmed our 2024E adjusted EBITDA estimate from
$496-million to $469-million leaving room for upside should 2024 adjusted
EBITDA guidance be met,” said Mr. McReynolds.
* RBC• Объект бренды » Бренды на r » RBC’s Michael Harvey raised his Tamarack Valley Energy Ltd. ( TVE-T ) target• Объект бренды » Бренды на t » Target
to $5 from $4.50 with an “outperform” rating• Рейтинги. Other changes include: National
Bank’s Dan Payne to $7 from $6.75 with an “outperform” rating• Рейтинги and CIBC• Объект бренды » Бренды на c » CIBC’s Jamie
Kubik to $5.75 from $5.50 with an “outperformer” rating• Рейтинги. The average is $5.44.
“Tamarack released a drama-free Q3/24 which featured ahead-of- street
expectations on both production and cash flow reflecting continued success in
the Clearwater/Charlie Lake. The company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания) will release its 2025 budget on
December 4, 2024,” said Mr. Harvey.
* National Bank’s Jaeme Gloyn raised his TMX Group Ltd. ( X-T ) target• Объект бренды » Бренды на t » Target to $48
from $44 with a “sector perform” rating• Рейтинги. The average is $46.88.
“Overall this was another strong quarter with solid top line growth and
operating leverage resulting in a beat on revenue and EPS,” said Mr. Gloyn.
“The tone on the conference call was bullish as management continued to show
confidence in the growth outlook. We believe this outlook is sufficient to
uphold TMX’s premium valuation.”
* CIBC• Объект бренды » Бренды на c » CIBC’s Dennis Fong lowered his Veren Inc. ( VRN-T ) target• Объект бренды » Бренды на t » Target to $13 from $15
with an “outperformer” rating• Рейтинги. Other changes include: National Bank’s Travis
Wood to $13 from $15.50 with an “outperform” rating• Рейтинги. The average is $12.27.
“Through an attempt to reduce capital costs by testing various completion
techniques across parts of the Montney, some of the company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания)’s most recent well
performance has been below expectations,” said Mr. Wood. “Consequently, the
company• Объект организация » Организации по алфавиту » Организации на Mi » Milestone (компания) has pivoted back to the legacy Single Point Entry (SPE) design.
However, given the weaker than expected wells are on stream late in the year,
our 2025 forecast has been revised lower, aligning with the bottom end of the
newly provided corporate guidance. This weaker than expected 2025 outlook
surprised the market and unfortunately follows a volatile fall, when in
September Veren reduced Q3 expectations and narrowed its 2024 production
outlook.
“Although today’s valuation is compelling, we expect investors will require
several quarters of strong operational results prior to regaining confidence.
Given the asset quality and what can be viewed as in-line performance across
the base, we expect positive operational momentum is probable; however, this
will take time to quantify as data becomes available.”
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