OTCPK:JENGQ - Post by User
Post by
JohnWalkeron Aug 19, 2019 10:14am
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Post# 30042720
CIBC Cuts JE to UNDERPERFORM
CIBC Cuts JE to UNDERPERFORM Globe says CIBC cuts Just Energy to "underperformer"
Just Energy Group Inc (C:JE)
Shares Issued 150,940,240
Last Close 8/16/2019 $2.24
Monday August 19 2019 - In the News
The Globe and Mail reports in its Saturday, Aug. 17, edition that CIBC's Mark Jarvi cut Just Energy Group to "underperformer" from "neutral" with a $2 share target, falling from $5.50. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $5.34. Mr. Jarvi says in a note: "Fundamentals are worse than we envisioned prior to the poor FQ1/20 results. Selling costs are elevated, RCE count is lower than assumed, RCEs are contracting with no offset in higher margins, leverage is higher and solvency is a real issue. These same weaker fundamentals ratchet down potential takeout values (strategic review remains ongoing). While we recognize media reports suggest JE has received indicative offers (possibly above the recent trading range), we do not have any conviction on a successful outcome. Rather we believe it is more prudent to assume downside scenarios that could include a failed sales process, weakened credibility, no yield support (assume the dividend is gone for good) and financial liquidity pressures."