TSX:AX.P.E - Post by User
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incomedreamer11on Nov 06, 2023 8:54am
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Analysts down target price
Analysts down target price * RBC’s Jimmy Shan cut his Artis REIT (AX.UN-T) target to $7.50, below the $7.75 average, from $8 with a “sector perform” rating. Other changes include: TD Securities’ Jonathan Kelcher to $7 from $6.50 with a “hold” rating and Scotia’s Mario Saric to $7.50 from $8.50 with a “sector perform” rating.
“We maintain our SP rating with our key estimates down 8-17 per cent post a quarter that lagged our expectations but met consensus,” said Mr. Saric. “Estimate changes are less relevant for AX than most peers. Rather, near-term unit price movement is more dictated by pace of asset sales and, ultimately, the outcome of the ongoing strategic review; we expect to hear something by year-end. AX is progressing on asset sales (particularly Office), which could support an SIB (now that the NCIB is exhausted; expires December 2023). We reiterate our Q2 view that there is likely more upside than downside at the current unit price (down 0.5 per cent since Q2 vs. down 6.5 per cent for sector), with AX more of a near-term catalyst-driven trade than positive long-term fundamental story, in our view. Outside the strategic review, a more dovish BoC/Fed is one of the near-term catalysts given AX’s significant floating rate debt exposure (73 per cent of total debt vs. 8-per-cent sector average).”