Canaccord and Acumen PT and commentary With Thursday’s release of weaker-than-anticipated quarterly results, Canaccord Genuity’s Robert Young cut his Pollard Banknote Ltd. (PBL-T) target to $30 from $48 with a “hold” rating, while Acumen Capital’s Jim Byrne reduced his target to $42 from $58 with a “buy” rating. The average is $39.63.
“Q4 results fell short our expectations mainly due to inflationary pressures on the company’s inputs,” said Mr. Byrne. “The company is still seeing very strong demand for its instant ticket products and charitable gaming operations in the first few months of 2022. Unfortunately, many of the pressures from Q4 will impact Q1/22. The company has a number of strategies in place to help mitigate the impacts as they enter the year.”
“We believe the underlying fundamentals for PBL remain very strong, and the company is poised to deliver strong growth and significant free cash in the coming years.”