TSX:MTL - Post Discussion
Post by
loonietunes on May 25, 2021 8:12am
In the news-Stockwatch
Globe says Mullen Group maintained at "hold"
2021-05-25 07:34 ET - In the News
The Globe and Mail reports in its Saturday, May 22, edition that Canaccord Genuity analyst John Bereznicki continues to rate Mullen Group "hold." The Globe's David Leeder writes in the Eye On Equities column that Mr. Bereznicki hiked his share target by 50 cents to $14. Analysts on average target the shares at $13.75. In a note on oil field service providers, Mr. Bereznicki says: "Despite improving oil field fundamentals, sector trading multiples remain depressed by historic standards. When external equity and debt capital was readily available, operators could outspend cashflow and create bullish tailwinds for the oil field sector. With this no longer the case, we believe investor OFS growth expectations have fallen significantly and trading multiples have compressed accordingly. In our view, this has also reduced the market capitalization of the oil field sector, making it less relevant to institutional holders. We believe this has two investment implications: i) future OFS share price appreciation is more likely to be driven by upward revisions in investor cashflow expectations than multiple expansion; and ii) the oil field sector needs more consolidation to support investor relevance."
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