Globe NR
Globe says Mullen Group reaffirmed at "strong buy"
2022-02-01 09:04 ET - In the News
The Globe and Mail reports in its Tuesday, Feb. 1, edition that iA Capital Markets analyst Matthew Weekes has reaffirmed his "strong buy" recommendation and $16 share target for Mullen Group. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $15. Mr. Weeks says Mullen is one of his top picks for 2022. Mr. Weekes says in a note: "Mullen finished 2021 modestly positive but underperforming the TSX. While Mullen's Q3 OIBDA was in line with forecasts, we believe that the market was disappointed by the margin performance in the quarter following the flurry of acquisitions completed in the first half of the year. Additionally, Mullen's 2022 guidance released in December was below expectations, overshadowing its 25-per-cent dividend increase. Mullen is modestly outperforming the TSX so far in 2022. Our Q4 forecasts are in line with consensus. We will be looking into Mullen's Q4 results and commentary for indications on the outlook for margins and demand as we consider supply-side issues, inflation and its impact on shipping and consumer demand, integration of 2021 acquisitions and headwinds for certain specialized industrial services."