RE:Your Morning Read
Globe says Galappatthige sees Corus rally continuing
2021-01-14 07:42 ET - In the News
The Globe and Mail reports in its Thursday, Jan. 14, edition that Corus Entertainment released quarterly results that exceeded expectations on Tuesday. The Globe's David Leeder writes that Corus posted consolidated revenues and earnings before interest, taxes, depreciation and amortization of $420-million and $179-million for the quarter. Both topped the consensus expectations on the Street ($418-million and $163-million). Accordingly, Canaccord Genuity analyst Aravinda Galappatthige continues to rate Corus Entertainment "buy." He boosted his share target to $6.25 from $5.50. Analysts on average target the Class B shares at $6.28. Mr. Galappatthige says in a note: "The effective management of Corus through the pandemic, continuing improvement in TV ads, and EBITDA trends and the compelling FCF yield at 32 per cent, suggests the stock should continue to improve. The thesis would also be aided by continued net debt reduction, which we estimate would ease to 2.7 times by end of 2021 and 2.5 times by the end of F2022 and serve to de-risk the stock even further and open up M&A options down the road." The Globe reported on June 30 that Mr. Galappatthige had reiterated his "buy" rating. The shares were then worth $2.86.