Concordia Healthcare Corp. T.CXR.R

Scotia. target 30 cents

[CHECKMATE77]

Concordia International Corp. (CXRX-Q; US$1.25; SU)

Outlook Remains Negative Ahead of Long-Term Strategy Reveal

OUR TAKE: Concordia recently reported in-line Q2 results that do not change our negative outlook related to the value of the equity. In our opinion, the leverage remains the major overhang, at ~10x FTM EBITDA, leaving little room for equity value until
a long-term solution to reduce the debt is executed. In terms of long-term outlook, management announced that they have finalized a long-term growth strategy which will be communicated to the Street in mid-September 2017. We maintain our Sector Underperform rating ahead of this announcement.

Full Report

Alan Ridgeway, PhD, MBA, CFA | Analyst | 416-863-7009 | Scotia Capital Inc. - Canada

Adam Buckham | Associate | 416-863-7178 | Scotia Capital Inc. - Canada

New Old Rating SP - 1-Yr. Target C$16.00 C$16.50 FFOPS17E $0.91 $0.95 FFOPS18E $0.99 $1.01

EQUITY RESEARCH | DAILY EDGE Thursday, August 17, 2017

Div. (NTM)
Div. (Curr.)
Yield (Curr.)
NAVPS $13.60 $13.80 Valuation: 17.25x AFFO (F'18 estimate)

$0.59 $0.58 $0.58 - 3.9% -

New Old Rating SU -

1-Yr. Target
Adj EBITDA (M)17E
Adj EBITDA (M)18E
Div. (NTM)
Div. (Curr.)
Yield (Curr.)
Valuation: 10.0x 2018E EBITDA

US$0.30 - $327 $324 $336 $327

$0.00 $0.00 0.0%

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