Desjardins Benoit Poirier up to 20$ Desjardins Securities’ Benoit Poirier increased his target to $20 from $16 with a “buy” rating.
“We are pleased with the EBITDA beat (underscoring the improvement of the base business), stronger-than-expected cash inflow (net leverage of 0.0 times is a key milestone), dividend increase and sequential reduction in the problematic backlog,” he said. “We believe ARE now has the balance sheet in place to weather future legacy storms, and our new target price implies an attractive potential return for investors despite our conservative stance on future writedowns.”
“In our view, ARE’s current depressed valuation and the potential return represent a good entry point for longer-term investors with a slightly elevated risk appetite. We also note that ARE has been a takeout candidate in the past.”