Concordia Healthcare Corp. T.CXR.R

CIBC TODAY

[fdfd12]

CXRX $47US with sector performer.

I guess notwrong is their analyst.

[retiredcf]

It was part of a 130 page report entitled: Canadian Specialty Pharmaceuticals - Is the Model Broken? Their focus was on 4 companies (CPH,CXR, MSL and VRX). I've included an intro + the cover page for the analyst report. GLTA -------------------------------------------------------------------------------------------------------------------------- Badly Bruised, But Not Broken The Canadian

[fdfd12]

Are their numbers right? That is when they say, $47 US is derived from "As of November 29, we are initiating coverage of Concordia Healthcare with a Sector Performer rating and a 12- to 18-month price target of $47, which is based on a 10x multiple of 2016E EV/EBITDA." He is saying the 2016EV/EBITDA will be $4.70US??? Is that right?  

[sunshine7]

Not certain that the 47$ target is expressed in USD. It seems that CIBC (and likely others) understand there is higher value potential there, but are unwilling to commit until financials including Amco are released. Their estimates are the lowest seen (yet above current price) and will re-evaluate after Amco sales are released. At that time of course, the SP will be much higher than today and will

[USNOOZEULOOZE]

This post has been removed in accordance with Community Policy

[sunshine7]

2016 guidance is Adjusted EBITDA2 of $610 million to $640 million. You do the math. Current cap is just over $2B. 10x is $6B or 3x current SP in USD or CD. Something I am missing?

[cg16]

I think CIBC is factoring EV in there somehow? otherwise the math is as sunshine points out.

[sunshine7]

"The market capitalization of a company is simply its share price multiplied by the number of shares a company has outstanding. Enterprise value is calculated as the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents" ... so they include the debt as part of the calculation. So as the debt is paid down, the EV rises. Makes sense

[notwrong]

This post has been removed in accordance with Community Policy

[fdfd12]

Notwrong, you have accusations but nothing to back it up. Please tell me where Sushine doesn't show any knowledge. Notwrong, let's be mature about this.

[notwrong]

This post has been removed in accordance with Community Policy

[healthstock1234]

They will re-evaluate their position, for sure. All the rules in Europe are known by AMCo, for Concordia is not hard to understand them because they operate there by AMCo. It is not a new market! If I understand well, they are waiting the Consolidated Financial Statements to raise the target or not. In this case, they are not able to offer us an information. 

[sunshine7]

I see CXRX and USD nowhere. I assume CRX and CD only. Please confirm.

[USNOOZEULOOZE]

This post has been removed in accordance with Community Policy