Multiple Raised TargetsJust initiated a position a few minutes ago. GLTA
CIBC’s Kevin Chiang raised his Parkland Corp. target to $50 from $48.50 with an “outperformer” rating. Other changes include: Canaccord Genuity’s Luke Hannan to $51 from $50 with a “buy” rating, Raymond James’ Steve Hansen to $55 from $50 with an “outperform” rating, Scotia’s Ben Isaacson to $50 from $45 with a “sector outperform” rating, TD Securities’ Michael Van Aelst to $52 from $50 with a “buy” rating, National Bank’s Vishal Shreedhar to $47 from $45 with an “outperform” rating and ATB Capital Markets’ Nate Heywood to $50 from $48 with an “outperform” rating. The average is $48.36.
“We exit Q3 with a more positive view of PKI, and recommend investors buy the stock ahead of its Nov. 14 Investor Day,” said Mr. Isaacson. “PKI remains focused on integration/synergy capture, improving leverage, as well as portfolio optimization, and has made meaningful gains on these (e.g., leverage at sub-3 times for the first time since ‘19). This includes the acceleration of its $2B EBITDA ambition to ‘24, which should result in $5/sh of FCF. Of course, $5 is not the goal, it’s now the base from which PKI will grow. Investors are keen to hear how PKI will fund this next stage of growth, without putting the B/S at risk, while at the same time growing the divvy. As a base, investors can expect PKI to grow EBITDA organically by 3 per cent to 5 per cent annually, with disciplined M&A on top of that. We have raised our PT to $50 from $45, largely to acknowledge (via higher multiples) solid execution by management, a better B/S, a refreshed board, and energy transition progress (although perhaps less urgency now, with GM/Ford decelerating EV development and Exxon/Chevron doubling down on oil ambitions). PKI is perhaps one of the most defensive names in our universe, and one of the few stocks that continues to work amidst the macro overhang, in our view.”