Comments / Upgrade G&M Dec 9 Desjardins Securities analyst Gary Ho said he’s “encouraged” by Alaris Equity Partners Income Trust’s (
) “positive” corporate update and “its ability to execute on investments in the current environment.”
On Tuesday, the Calgary-based firm confirmed the closing of a $46-million bought deal. It also announced a raise in its fourth-quarter revenue guidance to $31-million from $26-million, leading Mr. Ho to raise his earnings and capital deployment expectations through 2022.
Upon resuming coverage following the equity raise, Mr. Ho also raised his target for Alaris units to $18 from $16.50, keeping a “buy” rating. The average is $17.50.
“The higher valuation reflects an improved capital deployment outlook and continued performance in its existing portfolio, highlighted by earlier-than-expected distribution payments from Kimco and BCC,” he said.
“The units remain attractively valued, trading at 1.0 times P/BV with an 8.3-per-cent distribution yield.”
Elsewhere, CIBC World Markets analyst Scott Fromson upgraded Alaris to “outperformer” from “neutral” with a $19 target, rising from $15.50.
Scotia Capital’s Phil Hardie increased his target to $16 from $15 with a “sector perform” recommendation.