Black Diamond Group Ltd with a “buy” rating and $8.50 target Analysts at Acumen Capital introduced their 2023 “Top Ideas” list on Tuesday, consisting of seven equities (BDI included below) with a focus on “proven businesses that have historically shown solid execution against a well-articulated business plan.”
The firm said the stocks were chosen based on “reasonable valuations in the context of historical trading ranges; strong free cash flow generation supported by recurring revenue; business model that can grow both organically and through acquisitions; Strong balance sheet (or the ability to deleverage without external capital) to fund growth strategy internally and catalysts that may result in a step change in the business.”
“BDI had a total return of 10 per cent in 2022 after being a top performer in our coverage universe in 2021. Despite strong operational results achieved in connection with a transition of the business to an industrial from OFS, BDI continues to lag its peers. We believe BDI is well positioned for continued strong performance in 2023 driven by acquisition integration, stable and predictable growth in high margin rental revenue (MSS), steadily improving WFS utilization, and scaling of the LodgeLink digital platform.”
Acumen Capital gives Black Diamond Group Ltd. a “buy” rating and $8.50 target.