Bullboard - Stock Discussion Forum Stella-Jones Inc T.SJ

Alternate Symbol(s): STLJF

Forest Products Lumber & Wood Production

Stella-Jones Inc. is a Canada-based producer of pressure-treated wood products. The Company supplies various electrical utilities and telecommunication companies with wood utility poles and North America’s short line and commercial railroad operators with railway ties and timbers. The Company also provides industrial products, which include wood for railway bridges and crossings, marine and... see more

Add To Watchlist

TSX:SJ - Post Discussion

Stella-Jones Inc > Scotiabank Raise Target

View:

Post by retiredcf on May 29, 2023 9:31am

Scotiabank Raise Target

Following its Investor Day event, Scotia’s Benoit Laprade raised his Stella-Jones Inc. target to $70 from $64 with a “sector outperform” rating. The average is $70.71.

“After achieving its 2022-2024 objective of $3.0-billion in sales early (TTM [trailing 12-month] sales of $3.1-billion in Q1/23), management now expects revenues to exceed $3.6-billion by 2025, solely on the back of organic growth (5.5-per-cent CAGR from 2022), and an EBITDA margin of 16 per cent (compared to previous 2022-2024 guidance of 15-per-cent-plus and 14.6 per cent in 2022),” he said. “This implies 2025 EBITDA of $576-million-plus (8.7-per-cent CAGR from 2022). The company expects to return $500-million-plus to shareholders over the period, while maintaining a net-debt to EBITDA ratio of between 2.0 times and 2.5 times (in the absence of acquisitions). We believe the company’s target are achievable.”