TSX:CHE.DB.E - Post by User
Post by
ace1mccoyon May 11, 2022 10:19am
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Post# 34673759
BMO Raises TP -G&M
BMO Raises TP -G&M Apologies if this was posted previously but it wasn't in the G&M Upgrades earlier
* BMO’s Joel Jackson increased his Chemtrade Logistics Income Fund (
) target to $8 from $7.50. with a “market perform” rating. The average is $9.75.
“Even if/when caustic fades (CHE uses presumably IHS’ forecast to assume a 40 per cent/$300 per ton drop in spot caustic by year-end), this should be offset by a normal volume year (2023) at North Van and modest growth elsewhere,” he said. “This might get CHE back on the radar as a high-yielding opportunity (7-8 per cent) with moderate growth prospects but sufficient dividend cushion (50-per-cent payout). This being said, earnings remain highly sensitive to caustic prices, well above mid-cycle currently.”