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Exchange Income Corp T.EIF

Alternate Symbol(s):  EIFZF | T.EIF.DB.J | T.EIF.DB.L | T.EIF.DB.M | T.EIF.DB.K

Exchange Income Corporation is a Canada-based diversified acquisition-oriented company. The Company operates through two segments: Aerospace & Aviation and Manufacturing. The Aerospace & Aviation segment is comprised of three lines of business: Essential Air Services, Aerospace, and Aircraft Sales & Leasing. Its Essential Air Services includes both fixed wing and rotary wing operations. Aerospace includes its vertically integrated aerospace offerings that provide customized and integrated special mission aircraft solutions primarily to governments across the globe. Aircraft Sales & Leasing includes aftermarket aircraft, engine and parts sales and aircraft and engine leasing, along with aircraft management services. The Manufacturing segment is comprised of three lines of business: Environmental Access Solutions, Multi-Storey Window Solutions and Precision Manufacturing & Engineering. The Company also focuses on portable hydronic (glycol-based) climate-controlled equipment.


TSX:EIF - Post by User

Bullboard Posts
Post by 13calledelsolon Jun 21, 2017 11:02am
442 Views
Post# 26387305

Cormark Securities analyst David Tyerman initiated coverage

Cormark Securities analyst David Tyerman initiated coverage

Exchange Income Corp. (EIF-T) is “designed to deliver safe dividend growth,” said Cormark Securities analyst David Tyerman.

He initiated coverage of the Winnipeg-based company, which is focused on opportunities in aerospace and aviation services and equipment, and manufacturing, with a “buy” rating.

“EIC has increased its dividend 12 times since its first dividend in June 2004, raising the dividend at a 5.8-per-cent annual rate (106 per cent total) to the current 17.5 cents per month rate (7.2-per-cent annual yield) and without a single decrease,” said Mr. Tyerman. “EIC has achieved this by building a diversified business portfolio focused on aviation, aerospace and manufacturing assets. Growth is driven through acquisition and organic sources. The Company focuses on businesses with low volatility and low cross-correlation. EIC also seeks to protect and grow the dividend by maintaining prudent financial leverage and payout ratios.”
 

Mr. Tyerman believes additional growth is “baked in,” expecting to see returns on recent “large organic invested capital deployment.”

The analyst set a price target of $40 for the stock. Consensus is $44.70.

“We recommend investors buyEIC shares to benefit from EIC’s attractive dividend yield and EPS and dividend growth potential,” he said. “EIC’s $2.10 annualized dividend (paid monthly) yields 7.2 per cent at the Company’s current share price. We estimate EIC will increase its dividend by an average of 6.4 per cent per year and its EPS by 7.1 per cent per year from 2016 to 2019. We also think the stock is undervalued. We believe the combination of good EPS growth, a moderate valuation multiple bump and solid and growing dividends should generate an attractive 44.6-per-cent investment return over the next year. We expect continued good investment upside beyond the next year from the same factors.”

Bullboard Posts