Scotia Revisions - Utilities/Energy Infrastructure
Something I posted on the LCFS board:
Cuts across the board to earnings estimates and target prices to reflect the higher yield environment.
Without elaboration, they appear to be adjusting their timing of ramp-up for the diesel facility, plus the broad industry considerations of rates and moderating commodity prices. The LCFS target price drops from $21 to $17.75.
For 2023, they cut their EBITDA estimate from $150 million to $121 million, but increase the 2024 number to $178 million from $162 million. For '24, the EV/EBITDA multiple goes from 4.3 to 3.3.
Another company I own, Anaergia (ANRG-Tor), had its target cut from $18 to $14.50.Their EBITDA grows from $21 million this year, $95 million next year, and for 2024 $177.1 million, all unchanged. I would note that the 2024 numbers for these two companies are virtually identical: $177.1 mm and $178 mm. According to the Scotia report, LCFS has a market cap yesterday of $400 million and ANRG is at $500 million.
If these crazy optimistic numbers come to pass, both these companies are stupidly cheap.