National Bank Raises Price Target on Doman Building Materials Group, Notes 'Substantial Profitability Beat' in Q2
11:37 AM EDT, 08/08/2023 (MT Newswires) -- National Bank said Monday that it has upgraded Doman Building Materials Group Ltd.'s price target (DBM.TO) to $8.50 from $7.50 on higher estimates.
The bank reiterated its outperform rating, citing a positive long-term view on housing.
"DBM reported Q2/23 results on August 3rd, a substantial profitability beat to our estimates and consensus as a stable lumber market and operational improvements yielded best-in-class gross margins," the analysts said.
"We were already impressed by the company's ability to mitigate the typical seasonal pattern of a heavy working capital build-up in the first half of the year, with tight inventory management contributing to better than expected FCF in Q2," the analysts added.
Doman is a distributor of building materials and a provider of logging and wood-treatment services.
The company's stock jumped 7.1% on last look on Tuesday.