Globe says Cardinal Energy kept at "sector outperform"
2022-07-29 09:39 ET - In the News
The Globe and Mail reports in its Friday, July 29, edition that Scotia Capital analyst Konark Gupta continues to rate Cardinal Energy "sector outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Gupta boosted his share target to $200 from $190. Analysts on average target the shares at $221.83. Mr. Gupta says in a note: "Cardinal Energy reported all-time record revenue that exceeded expectations while EBITDA was roughly in-line. Management remains upbeat on 2H outlook and long-term growth prospects, driven by the growing e-commerce market in Canada and new long-term DHL contract. While e-commerce growth is not accelerating, it is holding up relatively well despite the weaker consumer sentiment on the back of inflation and rising interest rates. The higher-margin ACMI business continues to grow significantly and has a lot of upside from future aircraft deliveries. Margins are normalizing from pandemic highs but could see a tailwind from falling jet fuel prices." The Globe reported on June 28 that CIBC World Markets analyst Christopher Thompson rated Cardinal Energy "neutral" in new coverage. The shares could then be had for $7.43.