CIBC upside scenario
The CIBC 'upside scenario' cracks me up and they still put at $54 target there.
Our upside scenario is derived using our bull case pricing for
commodity lumber prices in 2023 with W. SPF at US$625/mfbm
and SYP also at US$600. In this scenario, In this scenario, we
see upside 2023E EBITDA of $920MM. We also apply a lower
multiple (3.5x) because of the unsustainably high lumber prices
So at $625 they're running at 2x EV/EBITDA. What's $1400 look like? 0.7x?
Our upside scenario is derived using our bull case pricing for
commodity lumber prices in 2023 with W. SPF at US$625/mfbm
and SYP also at US$600. In this scenario, In this scenario, we
see upside 2023E EBITDA of $920MM. We also apply a lower
multiple (3.5x) because of the unsustainably high lumber prices