Joseph says
Globe says Walewicz sees upside in Concordia Healthcare
2016-05-25 07:02 ET - In the News
The Globe and Mail reports in its Wednesday, May 25, edition that Laurentian Bank Securities analyst Joseph Walewicz recommends buying Concordia Healthcare ($40.93). The Globe's Jennifer Dowty writes that Mr. Walewicz believes there is upside to this stock. The stock is down from its one-year high of $118 set last September. The analyst says, "We believe the stock has suffered largely in sympathy with the broader sector sentiment." The Concordia Healthcare board is currently mulling alternatives. Mr. Walewicz says: "We expect organic growth with new product launches to drive the top and bottom line. Thus, we see continued growth as a near-term driver and de-leveraging as a longer-term driver for the stock. " Mr. Walewicz notes, "Concordia could be very attractive for a private-equity fund." He notes further that Concordia has significant insider ownership. The Laurentian Bank stockpicker says, "There are many hurdles, but valuation and the presence of significant insider ownership help the odds." CIBC World Markets analyst Prakash Gowd rated Concordia Healthcare "sector performer" in new coverage in The Globe on Dec. 1, 2015. The shares could then be had for $51.43.
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