Globe says headwinds seen for Sherritt International
Globe says headwinds seen for Sherritt International
Sherritt International Corp (C:S)
Shares Issued 293,885,466
Last Close 10/29/2015 $0.85
Friday October 30 2015 - In the News
The Globe and Mail reports in its Friday edition that BMO Nesbitt Burns analyst Aleksandra Bukacheva says uncertainty about debt service and refinancing could be a headwind for the share price of Sherritt International in the near term. The Globe's David Leeder writes in the Eye On Equities column that Ms. Bukacheva cut Sherritt "market perform (speculative)" from "market perform" though she noted "a modest nickel price recovery could boost investor interest due to scarcity of nickel-levered miners in Canada." She notes Sherritt has underperformed the decline in nickel prices, falling almost 70 per cent in the year to date compared with a 30-per-cent drop in the commodity's price. "We estimate that if the nickel price remains at its current level, Sherritt could have a funding shortfall of $220-million in 2018, when its corporate $250-million debt issue is due. The analyst also lowered her target price to $1 from $2.25. Analysts on average target the shares at $3.09. Ms. Bukacheva says BMO prefers Norilsk Nickel, which is rated "outperform" with a $15.21 share target, "for nickel exposure due to its industry-leading cost profile and generous returns to shareholders even at the nickel price's trough."