This one has a few more details than the earlier post. GLTA
In the wake of the late Friday announcement of its acquisition of the B.C.-based Bandstra Group of Companies, a group of equity analysts raised their target prices for shares of Mullen Group Ltd. Those making changes include:
* Scotia Capital’s Konark Gupta to $14.25 from $14 with a “sector outperform” rating. The average target on the Street is $13.23.
“Even after two material acquisitions of likely similar sizes, which could together cost $150-million to $175-milion (enterprise value), we believe MTL remains well-positioned for more acquisitions over the next 12 months with continued strong FCF generation and access to an upsized credit facility,” said Mr. Gupta.
* CIBC World Markets’ Kevin Chiang to $14.25 from $13.50 with an “outperformer” rating.
“We view this acquisition as in line with MTL’s strategy of expanding its logistics operations through M&A, and it reflects the company’s deep pipeline of opportunities,” said Mr. Chiang.
* BMO Nesbitt Burns’ John Gibson to $16 from $15 with an “outperform” rating.
“We continue to view MTL stock as appealing given its inexpensive valuation relative to peers combined with its growth strategy. In addition, the company is well positioned for another dividend increase this year,” he said.
* National Bank Financial’s Michael Robertson to $15.25 from $14.50 with an “outperform” rating.