Canaccord Genuity note Yellow Pages (TSX: Y), the Services sector company was revisited today, and remains undervalued for at least one analyst on the street. Analyst Aravinda Galappatthigefrom Canaccord Genuity reiterated a Buy rating, with a C$12 price target
Galappatthige noted:
We note that Q2/18 opex fell 26% or C$38M y/y. Meanwhile Capex tumbled from C$11.9M last year to C$0.4M, due partly to lease incentives (but core capex was still down ~80%). As a result EBITDA – Capex was up 49% to C$56.8M. FCF came in at C$22.3M ($0.84/sh.) for C$20M last year. Net debt stood at C$309.2M or 1.6x LTM EBITDA in Q2.”