Greater Visibility Write-Up- Capital Ideas Research Redishred Capital Corp. (TSXV:KUT). Echelon Capital Partners analyst Amr Ezzat raised his target price on Redishred, which shreds and recycles confidential documents and proprietary materials, to $1.50 per share from $1.25, while maintaining a “Buy” recommendation on the stock, after the Company released “blockbuster” third-quarter financial results.
“With many of the Company’s franchisees up for renewal in the next three years, we expect management to go cherry picking and deploy more capital into accretive tuck-ins,” he said.
“The acquisitions highlight KUT’s low-risk sizeable M&A pipeline. Namely, we estimate the Company can more than double its revenues through the roll-up of its franchisees. We have recently anointed it as one of Echelon’s Top Picks.”