lowering 1Q21 EBITDA forecast to $146-million (was $164M) Globe says Tremblay wary of headwinds at Cascades
2021-04-09 07:54 ET - In the News
The Globe and Mail reports in its Friday, April 9, edition that Desjardins Securities analyst Frederic Tremblay continues to rate Cascades "hold." The Globe's David Leeder writes in the Eye On Equities column that Mr. Tremblay cut his share target by a loonie to $18. Analysts on average target the shares at $19.36. The Globe says Mr. Tremblay trimmed his financial expectations for the company after an operational update on Tuesday that highlighted higher-than-anticipated headwinds. Cascades indicated raw material cost inflation in fibre prices in March was higher than previously expected. It also warned of pressures on retail tissue volume, weather-related production losses and an increase in transportation costs across its business segments, particularly south of the border. Mr. Tremblay says in a note: "In our view, the operational update suggests that the magnitude of these headwinds is currently more significant than we had anticipated. Ahead of the release of 1Q results on May 6, we are lowering our 1Q21 adjusted EBITDA forecast to $146-million (was $164-million). We believe that some of the impact will also be felt beyond 1Q21 and, therefore, we are reducing our 2021 and 2022 forecasts."