RE: Canaccord Parkland Fuel* (PKI : TSX : $16.92), Net Change: -0.46, % Change: -2.65%, Volume: 199,808
Further confidence. Following Parkland’s Investor Day and a marketing trip with company management, Canaccord Genuity
Consumer Products Analyst Derek Dley has reiterated his bullish rating and target price on the stock. PKI management
highlighted its most recent strategic plan, known as the “Parkland Penny Plan,” and provided an update on the company’s post
2013 earnings potential. The company guided to a base-case scenario of EBITDA of $190 million in 2014, growing to $242
million by 2016. These estimates assume PKI is able to acquire EBITDA of $12 million during each of the next three years,
which, given that the company has thus far acquired ~$27 million in EBITDA during the first year of the plan, appears
conservative. Following the company’s strong performance in over-delivering on its first year targets related to the strategic
plan, Dley has further confidence in PKI’s ability to meet or exceed its 2014-2016 targets. Dley believes PKI’s status as an
industry consolidator, coupled with a very healthy balance sheet, has the company well positioned to complete accretive
acquisitions. Meanwhile, the current dividend yield of ~6.0% will reward investors as PKI executes on its strategic plan.