Buy rating
Globe says Cooper keeps Clearwater Seafoods at "buy"
2018-03-08 08:22 ET - In the News
The Globe and Mail reports in its Thursday, March 8, edition that Beacon Securities analyst Doug Cooper has cut his share price target for Clearwater Seafoods to $8 from $12. The Globe's Gillian Livingston writes that the median share price target is $4.25. Mr. Cooper continues to rate the shares "buy." Mr. Cooper says in a note: "Clearwater reported another disappointing quarterly result yesterday. While fourth quarter revenue was in-line with expectations at $174.8-million, EBITDA (shareholder) [earnings before interest, taxes, depreciation and amortization] was lower than expected at $22.9-million -- the weakest Q4 result since the acquisition of Macduff. For the year, this translated into revenue of $621-million with shareholder EBITDA of $89.1-million. The last two years have been painful for CLR shareholders (to say the least) with the stock down 70 per cent. The company's 'guidance' for FY18 doesn't paint a picture that it will get better anytime soon. ... Given the expected lower revenue y/y in FY18, we have revised our forecast. We now model $577-million in revenue (was $602-million) with consolidated and shareholder EBITDA of $95-million and $76-million respectively (were $118-million and $95-million)."