OTCPK:RKNLF - Post by User
Comment by
MatWeion May 09, 2014 12:50pm
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Post# 22544493
RE:Canaccord and Paradigm updates
RE:Canaccord and Paradigm updatesLooks like TD also reduced their price target from $7.50 to $7.00 and GMP from $10 - $9.25.
Canaccord and GMP reduced due to revised downwards EBITDA margins ( with TP based on EV/EBITDA multiples).. as I guessed, looks like everyone got a little spooked with the lower EBITDA margin this quarter. Guessing also that management is messaging a slightly lower EBITDA margin estimate for FY2014 (i.e. perhaps signalling low end of target mid-teens).
Not sure why TD reduced but suspect it's the same thing.
Overall message remains bullish. I'm guessing the continued SP weakness relates to these reduced TP. Otherwise I can't fathom why TP would be so weak on otherwise strong financials.
In any case, suspect the stock is in the doghouse for a while longer yet.
west12 wrote: * Redknee : Canaccord Genuity cuts target price to C$7.25 from C$8.50; rating buy * Redknee : Paradigm Capital cuts target price to C$6 from C$7; rating buy