Share Price is Dropping because Performance Sucks
You don't need to look real deep on this. Parkland's performance sucks, while its competitors contiue to grow and prosper. Acquisitions have not been accretive, outlets are actually selling less on a same store basis. etc. Gas is not the money maker but fillups is what brings people in to the store where the real money is made. If less people use your stations your results suffer and that is what is happening to Parkland. They have been rding Alementation CT's coat tails and got way over priced based on their actual performance. The other issue is, they are doing nothing to get ready for the move to electric vehicles, won't happen over night but it willl happen over time. How do you get the EV drivers into your stores. The share price will continue to drop until it aligns with current performance.
Since THEN ParkLand HAS MADE a Steady REBOUND__Already UP Almost 12% From Those LOWS in September.
11:59 AM EDT, 10/14/2021 (MT Newswires) -- Goldman Sachs on Thursday reiterated its buy rating on the shares of Parkland Corp (PKI.TO) and raised its target price to C$47.00 from C$46.00 as it sees the Canadian oil refiner and gasoline retailer enjoying solid margins and a strong 2022.
"We continue to recommend PKI.TO as a Buy following YTD underperformance (PKI.TO) YTD -9% vs. our Refining coverage average +60%) and on attractive valuation, with 31% total return vs. the sector average of 8%," the investment bank noted. "We see the company trading at a discount to its SOTP, and see its Burnaby refinery as advantaged from a feedstock sourcing perspective and given high barriers to entry in the Vancouver market, lending to attractive margins. The company should also experience a positive rate of change into 2022, as marketing volumes continue to recover post-COVID."