TSX:DHT.UN - Post by User
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retiredcfon Jan 15, 2022 10:54am
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Canaccord
CanaccordJust found this from 6 December. GLTA
Calling it “a low-risk way to play the biopharmaceutical space,” Canaccord Genuity analyst Tania Gonsalves initiated coverage of DRI Healthcare Trust with a “buy” recommendation, seeing it as “cash flow risk but royally overlooked.”
“DHT is managed by DRI Capital, one of the oldest biopharmaceutical royalty monetization companies in the world,” she said. “After 15 years utilizing the private fund model, this year DHT completed an IPO. The evergreen nature of a public company provides for an attractive cost structure and allows DHT to reinvest cash flow into building out its royalty portfolio. We believe the stock has been overlooked due to concerns around the seed assets’ declining royalties; however, DHT has already announced up to $135.5-million in new royalty deals. It is targeting the deployment of $650-750-million over five years. We are confident that it can meet (or exceed) these objectives given the historic cadence of capital deployment.”
Ms. Gonsalves set a target of $15.50 for units of the Toronto-based trust. The current average on the Street is $17.76.