Park Lawn Corp T.PLC

Consumer Cyclical Personal Services

Park Lawn Corporation is engaged in providing goods and services associated with the disposition and memorialization of human remains. The Company and its subsidiaries own and operate businesses, including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. Its primary products and services are cemetery lots, crypts, niches, monuments, caskets, urns and other merchandise, funeral services, after-life celebration services and cremation services. Its products and services are sold on a pre-planned basis or at the time of death. It has one stand-alone funeral home located in Durham, North Carolina; one stand-alone funeral home and one on-site funeral home and cemetery located in Abingdon, Virginia; eight stand-alone funeral homes, two stand-alone cemeteries and one on-site funeral home and cemetery located in and around the Savannah, Tennessee area; three stand-alone funeral homes located in Brampton, Woodbridge and Toronto, Ontario and more.

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Park Lawn Corp

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Post by retiredcfon Jan 06, 2021 12:42pm

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Post# 32233783

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They have bumped their target by a buck to $34.00. GLTA

Special Situations Coverage Update

Introducing 2022 Estimates and Updating Target Prices

We are introducing F2022 estimates and updating our target prices across the majority of our Special Situations coverage universe. Our target price changes primarily reflect: (1) the rolling forward of target price calculations to be based on F2022 EBITDA (versus F2021 EBITDA for most of our coverage previously); and (2) fine-tuning of target price multiples to reflect the more bullish market sentiment, particularly with respect to smaller cap and value names, on the back of the COVID-19 vaccine. Exhibit 2 illustrates the changes to our target prices and valuation multiples. In addition, we have made changes to our 2020/2021 forecasts for several names (see Exhibit 3). Note, we have not made any rating changes in this note.

Our 2021 Sector Outlook: While our Special Situations coverage encompasses a wide range of industries, products/services, end-market customers, and fundamental drivers, we expect broadly improved results in 2021 reflecting our expectation for relaxed social distancing measures in H2/21 alongside the COVID-19 vaccine. Furthermore, we have been impressed with the pace and magnitude with which many companies have been able to ratchet-down their expense base (e.g. CCL, CIGI, and ITP) and see potential for this to drive margin beats as revenues recover across 2021. We anticipate M&A continuing to be a major theme given the significant dislocation caused by COVID-19. Companies that we see with the greatest potential to execute material acquisitions include: FirstService Corp. (FSV-N/T); Colliers International Group Inc. (CIGI-N); Park Lawn Corp. (PLC-T); and Transcontinental Inc. (TCL.A-T). Furthermore, we expect a continued stream of tuck-in acquisitions from Boyd Group Services Inc. (BYD-T); GDI Integrated Facility Services Inc. (GDI- T); Superior Plus Corp. (SPB-T); and CCL Industries Inc. (CCL.B-T).