GREY:XEBEQ - Post by User
Post by
Ciaoon Jan 04, 2021 8:54am
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Post# 32213929
Beacon ups target to $11.50
Beacon ups target to $11.50They are doing what TD said before, noting how events (acquisitions) could result in changing target prices. Beacon's target price of $11.50 only accounts for the effect of the HyGear purchase.
"Revising Target Higher, With Further Upside Once Inamtec Closes and The Second Acqusition Is Announced. We incorporated HyGear into our FY21E forecast (valuation base year) but not Inmatec (we will revisit once the transaction closes). On a pro-forma basis, we estimate Xebec’s cash balance stands at ~$130 million which is more than sufficient to cover the Inmatec acquisition, HyGear’s growth Capex as well as a second acquisition that is currently at the LOI stage. As of 2021, Xebec has grown well beyond its RNG business (<25% of FY21E revenue) into a well-diversifed clean-technology play on gasses, providing systems and service to hydorgen, RNG, nitrogen and oxygen systems across North America, Europe and parts Asia and MENA regions. Our revised valuation multiple of 11x is a reasonable reflection of this reality . Our revised target price is $11.50. BUY"