2023-10-10 08:04:19 AM ET (MT Newswires)
08:04 AM EDT, 10/10/2023 (MT Newswires) -- TD Securities upgraded Mullen Group Ltd. (MTL.TO) to Buy from Hold on Tuesday.
Analyst Tim James maintained a price target of $18.50 on shares of the Canadian logistics company.
James said the upgrade is due ton MTL's price weakness and the historically high valuation discount relative to comparables.
"We believe that Mullen's recent, and unwarranted, valuation underperformance provides a relatively good opportunity for investors looking for exposure to the trucking sector during a period of economic uncertainty," the analyst said in a note to clients.
"We believe the recent share-price performance, Mullen's current valuation multiples relative to its history and comp group, and our prudent forecast offset the current industry backdrop of negative year-over-year growth and supports a higher share price over the next 12 months," James said.