RE:RE:TD Waterhouse CommentsScotia basically says that they expect the share to continue to raise this year. Maybe someone can post it. They kept their 12 month target of $20.
Reading through how they got to that conclusion. They base it on 1.22 net adj earnings per share and a multiple of 14.50x which gives a stock around $18.
This is just and example of how useless price targets are. Altagas hit .64 cent per share this quarter. "net income applicable to common shares for the period was $174 million ($0.64 per share),"
Next quarter is their big money quarter. say they hit .75 per share. Thats already 1.39 per share earnings with only 1/2 year. I won't even count the other half of the year. Look at the different targets you can get within a normal multiple range.
1.39 net earnings per share
Multiple 14.50x Stock price = $20
Multiple 17x stock price = $23.63
Multiple 20 x stock price = $27.80
Add just .20 net earning for second half year
1.59 net earnings
Multiplt 14.50x Stock price = $23.05
Multiple 17x stock price = $27.03
Multiple 20 x stock price = $31.80
Altagas' multiple last year approached 30x If they are given a growth multiple the stock would touch $49.50
So over the past year the price targets on this company could have swung from $20 per share to $50 per share using the same anaylst data point and the same people spitting out the price targets. Point being furture price targets are utterly useless