RE:RE:Good Q3 and Nobody CaresWell it looks like maybe three people care. I bought more shares today.
I listened to the conference call, which was pretty bullish, but there were no analyst questions. I see that National Bank does cover it, with a $15 target and Sector Perform rating. They forecast $4.72 in free cash flow per share in 2023, which makes me think:
- Why do they only have a $15 target? Maybe they didn't give it too much thought. Also, they have a DCF model that is assuming a long term rate of decline of 12.5%. That seems pretty harsh, as EBITDA was only down 1% in this quarter. The analyst himself is only forcasting a 5.5% decline in 2023.
- The current dividend payout would only be 13% of FCF. Clearly they could easily triple the dividend, and still have a nice low payout ratio.
- The company will probably start another NCIB. The last two years they maxed out what they could buy under the NCIB. Or maybe they just wait and do another big buyback like the recent plan of arrangement.
This stock could double in my view, if more people start to notice.
GLTA