Analyst reportAn analyst that covers BEV/BEL in the US has come out with an update raising his 12 month target price from $18 US to $22 US which equates to $30.10 Cdn. Again the reports are auto sent if you sign up at Bennett's website under info;
https://www.bennettenv.com/contact/contact.html
He has some interesting & very bullish comments such as (all in USD$);
Belledune will double Bennett’s incineration capacity to
200,000 tons annually and earnings capacity to $2.00.
Our $2.00 earnings capacity does not consider the currently
inflationary pricing environment, recent operating
improvement initiatives, and the potential for expanded
operating permit approval beyond the currently permitted 12.5
tons/hour in Quebec.
We continue to anticipate the Company’s current $200M
(400,000 tons) of backlog to grow substantially over the next
couple of quarters.
We are raising our 12-month price target from $18 to $22 (12x our
preliminary 2005 EPS estimate of $1.80). Considering Bennett’s
substantial growth prospects, we feel the stock is significantly
undervalued. Additionally, we believe Bennett will be accorded an
expanded multiple over the coming quarters as investors gain comfort
with the improved earnings predictability afforded by the Company’s
recently built storage facility. Should the Company prove its earnings predictability, we would not be surprised to see the stock trade into the mid-20’s over the next 6-12 months.
Our 2004 EPS estimate of $1.20 assumes 135,000 tons of soil are incinerated between Plant #1 and the proposed Plant #2 in Belledune, New Brunswick, which we expect to be operational in Q2 of 2004. With 200,000 tons of capacity available, obviously the Company has the potential to burn in excess of 140,000 tons in 2004. Under perfect conditions, we believe Bennett could earn $2.00 in 2004. While we had originally anticipated the Company to pursue a third stand-alone facility in Ontario, we think capacity expansion at Plant #1 is probably a more likely scenario. This would yield EPS power in
excess of $2.00. We are increasing our 12-month price target to $22 (12x our preliminary 2005 EPS estimate of $1.80).