Latest ANALYSTS Ratings,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Parkland Price Target Lowered to $40 at RBC, Stock Declines 7% Following Q3 Results
07:12 AM EDT, 10/20/2022 (MT Newswires) -- Parkland Corp. (PKI.TO) shares declined 7% on Wednesday after the Calgary-based gas station operator said its Q3 results were negatively impact by inventory adjustments, increasing costs, and hedging losses.
RBC Capital Markets analyst Luke Davis lowered his price target on the stock to $40 from $47, and maintained an Outperform rating.
"We believe the stock may remain under pressure near-term given recent missteps with strong execution key to restoring investor confidence in the outlook," Davis said in a note to clients.
"We maintain our Outperform rating given our view that the medium-term outlook remains favourable despite a weak quarter largely impacted by non-recurring items," the analyst said.
Parkland Upgraded to Neutral at Goldman Sachs After Share Price Drop; Price Target Kept at C$34.00
11:09 AM EDT, 10/20/2022 (MT Newswires) -- Goldman Sachs on Thursday upgraded its rating on the shares of Parkland Corp (PKI.TO) from sell to neutral with an unchanged C$34.00 price target after the oil refiner and gasoline retailer's shares fell 9% after it issued a warning on weaker than expected third-quarter results on Wednesday.
"We upgrade Parkland Corporation (PKI.TO) to Neutral from Sell as the stock has sharply underperformed since our downgrade to Sell in July, with our more negative view having been largely predicated on SOTP valuation, fuel demand uncertainty, lower capital returns, and given we saw more upside elsewhere in Canada," the investment bank noted.
"Since our downgrade, PKI.TO is -16% vs refining peers +38%, retail peers +26%, S&P 500 -3%, and TSX +0%. After today's selloff of ~7% (on a 3Q pre-report of C$325 mn of adj. EBITDA vs FactSet consensus of ~C$432 mn - though full year guidance of C$1.6-C$1.7 bn of adj. EBITDA was left unchanged and is in-line with revised GS estimates), we now see 28% total return to our PKI.TO price target of C$34 (unchanged) vs the refining sector average of 7%. While we remain concerned around limited capital returns vs peers (particularly buybacks), and see some risk around fuel demand surprising to the downside amid broader macro uncertainty, we ultimately believe these risks are now better priced and note that PKI screens more attractive on a SOTP valuation perspective (31% upside)."
Parkland Kept at Outperform by BMO Capital Markets Following Earnings Warning; Price Target Cut to C$35.00
11:40 AM EDT, 10/20/2022 (MT Newswires) -- BMO Capital Markets on Thursday reiterated its outperform rating on the shares of Parkland Corp (PKI.TO) while reducing its price target to C$35.00 from C$47.00 after the oil refiner and gasoline retailer warned its third-quarter results will be weaker than expected.
"On October 19, before the market open, Parkland (PKI) provided a market update press release, which was essentially a substantial downward guidance revision for Q3/22," analyst Peter Sklar writes. "We believe the stock declined abruptly today due to the significant EBITDA miss and due to investors' realization that PKI's results are much more exposed to commodity volatility than previously believed. Notwithstanding, with the company now valued at 5.4x our 2023E EBITDA (which assumes a normalized crack spread), we find valuation compelling, especially after considering today's price decline. Lowering target price to $35."
National Bank Maintains Rating on Parkland; Q3 Performance Expected to be Lower Than Expected
11:58 AM EDT, 10/20/2022 (MT Newswires) -- National Bank on Wednesday maintained its outperform rating on Parkland Corp. (PKI.TO) even as the third-quarter performance is expected to be lower than expected.
The company's shares fell nearly 2% on last look on Thursday.
The management is expecting third-quarter adjusted EBITDA of $325 million, below its expectations largely driven by volatile product prices.
Parkland, however, continues to expect a 2022 adjusted EBITDA outlook of $1.6 billion to $1.7 billion, largely reflecting confidence in the fourth quarter and closing of the Sol acquisition.
The price target was reduced to $38 from $44, reflecting "lower estimates and a lower valuation multiple," the analysts said.