"outperform"
Globe says Exro Technologies boosted to "outperform"
2024-04-09 09:09 ET - In the News
The Globe and Mail reports in its Tuesday, April 9, edition that National Bank Financial analyst Rupert Merer thinks Exro Technologies has accelerated its growth with the $402-million acquisition of SEA Electric, calling it a "strong" deal and seeing "upside on execution of the sales ramp and further progress on [its] market developments." The Globe's David Leeder writes in the Eye On Equities column that in response to Friday's announcement of shareholder approval of the deal, which was announced in January, Mr. Merer raised his recommendation for Exro to "outperform" from "restricted." Mr. Merer trimmed his share target to $1.60 from $2. Analysts on average target the shares at $1.70. Mr. Merer says in a note: "Exro has higher revenue growth forecasted than for the peer group, and we believe that warrants a multiple closer to the upper range of peers. With strong partnerships, a proven platform and opportunities for further developments, we like the transaction. ... We are more confident in a near-term multiple approach to valuing the company. With the shares trading at about 81 cents, we see good upside potential for the stock." Mr. Merer warns, however, that "the company has some execution risk."