TSX:CHE.DB.E - Post by User
Post by
incomedreamer11on Oct 01, 2021 9:27am
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Post# 33951499
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Upgraded Following the US$155-million sale of its potassium chloride and vaccine adjuvants businesses to Vertellus, Scotia Capital analyst Ben Isaacson raised his target for Chemtrade Logistics Income Fund (CHE.UN-T) to $7 from $6.25 with a “sector underperform” rating,while Raymond James analyst Steve Hansen raised his target to $12 from $11.50 with an “outperform” rating. The average is $8.57.
“We regard Chemtrade’s sale of its Potassium Chloride and Vaccine Adjuvants business units to Vertellus, a manufacturer of niche specialty products, as a solid strategic move designed to reduce leverage and hone focus,” said Mr. Hansen. “First contemplated back in 2Q19, this strategy was temporarily shelved when COVID first emerged.
We are pleased to see it come to fruition. With the two businesses generating US$14.3-million (in TTM EBITDA (ending Jun-30-21), we also like the price, equivalent to 10.8 times TTM EBITDA, an accretive value relative to CHE’s recent trading metrics (8.5 times FY21 & 7.0 times FY22).”