TP raised... Canaccord Genuity’s Matthew Lee raised his Black Diamond Group Ltd. target by $1 to $7, above the $6.88 average, with a “buy” rating.
“Last week, we attended Black Diamond’s investor day and site tour in British Columbia,” he said. “We left with several key takeaways that we believe reinforce our thesis on the name and suggest that the outsized returns being achieved on the Modular Space Solutions (MSS) side are likely to continue in F22, while the Workforce Solutions (WFS) business ramps up utilization. In addition, we demoed BDI’s LodgeLink system and were impressed by the web application, noting that it currently has a larger gamut of solutions than we initially expected. Overall, the visit buttresses our view that the company will be able to deliver a combination of robust EBITDA growth and solid FCF. Our continued conviction in the BDI thesis and the roll-forward of our model to F23 results in a $1 increase in our target.”