ShawCor Ltd (TSX:SCL)
Shares Issued 70,481,082
Last Close 12/1/2021 $5.00
Wednesday December 01 2021 - In the News
The Globe and Mail reports in its Wednesday, Dec. 1, edition that iA Capital analyst Matthew Weekes has reaffirmed his "speculative buy" recommendation for ShawCor. The Globe's David Leeder writes that Mr. Weekes gave his share target a 25-cent haircut to $7.50. Analysts on average target the shares at $7.82. Mr. Weekes sees near-term weakness ahead, but believes that the overall outlook is "positive." Mr. Weekes says in a note: "ShawCor's pipeline and pipe services segment is characterized by late-cycle E&P CAPEX torque, exposure to large offshore projects, and a high fixed cost base. Following a deep restructuring, we believe the segment is positioned for improved profitability going forward, but revenues remain naturally subject to variability. ShawCor's composite systems (CS) segment includes the composite tanks business, which we view as having stable, maintenance-like characteristics, while demand for other CS products and services is primarily driven by North American drilling and completions activity. ShawCor's automotive and industrial segment is typically stable and has historically grown at a mid-single-digit rate, which we believe can continue going forward based on positive secular growth trend."