TSX:SIS - Post Discussion
Post by
retiredcf on Nov 24, 2022 9:43am
Stifel
09:39 AM EST, 11/24/2022 (MT Newswires) -- Stifel GMP on Thursday reiterated its buy rating on the shares of Savaria (SIS.TO) with a C$24.00 price target after the mobility-products manufacturer opened a new factory in Mexico.
"Savaria announced the opening of its 95,000 square foot factory in Queretaro City, Mexico, adding to the company's total 17+ facilities and >1 million square ft of distribution and production space," analyst Justin Keywood noted. "Constructed over the past seven months, the purpose of the factory is to closer serve the U.S. market (39% of 2021 sales) and de-risk supply chains, expected to result in shorter lead times and lower freight costs. The factory also adds about 10% in overall capacity to meet strong demand. The factory is expected to be fully ramped up in early 2023 and management plans to hire ~100 employees in Q4/2022. More broadly, Savaria has executed well through supply chain challenges, including reporting 16% YoY organic growth in Q3 and reflecting continued strength for assisted lift solutions. Savaria's 2022 guidance is in the range of $120mm-$130mm of EBITDA or 20-30% YoY growth and a 10-11x fwrd EBITDA multiple."
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