RE:RE:RE:Latest from ScotiabankThe Scotiabank commentary you have pasted is the Nov 2 targets and multiples. I notice that in the daily edge report they have updated their headline target to 90, but not their commentary. If you look down through what I posted earlier, you will see that they are using a 6.5 multiple to get to 90. The portion that explains that is:
Highly attractive valuation. We raised our target price to $90 from $85 on rolling forward valuation to 2025E from average 2024E-2025E, while trimming our EV/EBITDA multiple by 0.5x to 6.5x and largely maintaining our forecasts. Our target multiple is significantly below BBD’s pre-pandemic average of 10x to reflect macro/long-term capex risks and the pure-play nature of the business. The stock is currently trading at 6.2x/4.8x on our 2024E/2025E vs. the closest comps (GD/TXT) at 11x/10x and its pre-pandemic trough of 6.0x.