AirBoss of America Corp. (BOS-T), a manufacturer and seller of rubber compounds, has transitioned to become “a deep-value play” while also offering an attractive 5.2% dividend yield and decent balance sheet, said Canaccord Genuity analyst Yuri Lynk.
But with its Engineered Products (EP) segment having been restored to profitability, there are few identifiable catalysts that could ignite a rally in its shares at the moment, he said.
In preliminary fourth-quarter results last week, the company reported adjusted EBITDA of $13.9 million, substantially ahead of Canaccord’s $5.7 million estimate and consensus of $6.3 million. Full results were released this week.
“With the full financials in hand, we could confirm the beat was driven by the EP segment on higher revenues and a return to profitability mainly on the back of renegotiated agreements with key suppliers and customers, which more than offset weak results from the other two segments,” Mr. Lynk said in a note.
Mr. Lynk reiterated a “buy” rating and C$14.00 one-year target price.