National Bank Revises 2024, 2025 Estimates for Dexterra Group Following Q4 Results
12:40 PM EDT, 03/11/2024 (MT Newswires) -- National Bank said Monday that it has revised its estimates for 2024 and 2025 for Dexterra Group Inc. (DXT.TO) after considering fourth-quarter results and management commentary.
National Bank is expecting 2024 revenue of $1.13 billion, up from the previously expected revenue of $1.12 billion. Adjusted EBITDA for 2024 is expected to be $91.2 million, down from $102.3 million expected previously.
National Bank has lowered its 2024 EPS estimate to $0.39 from the previous estimate of $0.56.
For 2025, National Bank is now expecting revenue of $1.17 billion instead of the previously expected revenue of $1.11 billion. Adjusted EBITDA for 2025 is expected to be $97.8 million versus the previous estimate of $97.1 million.
EPS for 2025 is now expected to be $0.48, down from $0.55 expected previously.
"With Modular held for sale, our target moves to $9 (was $10) on a sum-of-parts methodology based on 2025e EBITDA [....], which can be replicated with a DCF using a 13.7% discount rate," the analysts said.
National Bank, however, has maintained its outperform rating after expecting to see upside from an overly compressed valuation because of a potential for a cleaner and more consistent story following the sale of Modular.
Price: 5.85, Change: -0.13, Percent Change: -2.17