12:35 PM EDT, 05/17/2023 (MT Newswires) -- National Bank said Tuesday that it has lowered the price target on Parkland Corp. (PKI.TO) to $32 from $32.50 while noting higher borrowing costs, a rise in net debt rises in the bank's model, and flat organic growth ahead.
"PLC is now beginning to lap relatively easier comps in Q2 and onwards as COVID-19 entered a mostly steady endemic state a year ago. Volume headwinds in the quarters ahead should thus be more muted, aligning with guidance for roughly flat performance," the analysts noted.
National Bank maintained its outperform rating on the company.
The bank revised its estimates following Q1 results, which recorded a slight beat, to reflect recent trends, FX fluctuations, and management commentary.
"Despite a stronger than anticipated top line in Q1, we nudge our organic growth assumptions downward in the remainder of the year to align with guidance for roughly flat performance," the analysts added.
The company's shares fell nearly 1% on last look on Wednesday.
Park Lawn is a provider of cemetery, cremation and funeral services in Canada and the US.
Price: 33.80, Change: +0.31, Percent Change: +0.93