GREY:NPCUF - Post by User
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Aberta1on Jan 26, 2017 8:00am
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Globe says NAPEC rated "outperform" in new coverage
Globe says NAPEC rated "outperform" in new coverage Globe says NAPEC rated "outperform" in new coverage
2017-01-26 07:47 ET - In the News
The Globe and Mail reports in its Thursday, Jan. 26, edition that Raymond James analyst Frederic Bastien says NAPEC currently provides an "excellent" entry point for investors. The Globe's David Leeder writes in the Eye On Equities column that Mr. Bastien began coverage on NAPEC with an "outperform" rating. Mr. Bastien set a target price for the stock of $1.40, matching the average expectation of analysts. Mr. Bastien says in a note: "There is potential for further improvements next year, as NAPEC's restructuring efforts yield additional savings and scale drives operating leverage. This, at least, is what is implicit in our sector-leading EBITDA margin target of 8.7 per cent for 2018. The stock notably trades at an EV/EBITDA [enterprise value to earnings before interest, taxes, depreciation and amortization] multiple of five times our 2017 estimates, versus average multiples of 6.2 times for the three Canadian contractors we cover and 8.2 times for a better representative group of U.S. specialty contractors. Assuming NAPEC delivers on its well-laid out strategic plan and the market rewards the company appropriately, we believe investors could be staring at a $2 stock price in two years' time."