Savaria Corp T.SIS

Desjardins

[retiredcf]

Barely adjusted his target and still looking for a near double. GLTA

Desjardins Securities’ Frederic Tremblay reduced his Savaria Corp. target to $25 from $25.50 with a “buy” rating. The average is $23.

“SIS shares were down 8 per cent after 1Q adjusted EBITDA missed consensus (but was in line with our forecast),” he said. “Year-to-date, the stock is down 32 per cent (vs down 7 per cent for the S&P/TSX), which we view as deeply exaggerated. 1Q22 is seasonally soft and faced various headwinds without the full benefits of Savaria’s key initiatives. We expect performance to improve meaningfully in 2Q and beyond (volume, pricing,synergies, etc). 2Q is off to a solid start based on management’s comments and unchanged guidance.”