BMO Capital on Canfor - Outperform and C$40 Price Target 2022-11-01 12:25:00 PM ET (MT Newswires)
12:25 PM EDT, 11/01/2022 (MT Newswires) -- The slowing housing markets and lower lumber prices will pressure near-term EBITDA for Canfor, but the company is sitting on considerable financial "dry powder" of C$10.50/share in "net cash" and ~C$7/share in duty deposits with the US Treasury, writes BMO Capital's Mark Wilde.
Valuation is also very attractive at current levels -- Canfor is trading at 0.6x Book Value.
While Wilde is reducing near-term estimates on a more challenging 2023 outlook, he is maintaining his Outperform and C$40 price target.
"The stock appears to have excellent value for patient investors."