TSX:CSE.PR.A - Post by User
Post by
anon314on Jun 05, 2012 5:45pm
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Post# 19983094
Canaccord Raises Target to $4.75
Canaccord Raises Target to $4.75 From Canaccord report of 3 June 2012:
We view these events positively because we believe they reduce the financing and dividend uncertainty issues which have overhung the stock since December. However, we believe uncertainty persists because Capstone still has not secured a new PPA for the Cardinal Cogeneration facility. Without a new contract, the sustainability of the new dividend is not likely assured. We acknowledge that risk has been reduced, but we continue to believe that an investment in Capstone is subject to greater risk than many of its peers. In light of the reduced refinancing risk and dividend uncertainty, we are increasing our target price to C$4.75 from C$4.50 and maintaining our BUY recommendation. Our target price implies a potential return of ~29%, including the dividend yield of 7.7%.