credit suisse's summary on SP change...cheersCredit Suisse Cuts Tidewater Midstream's Price Target, EPS estimates Amid Volatile Commodity Markets
09:09 AM EDT, 07/15/2022 (MT Newswires) -- Credit Suisse said Friday that it reduced Tidewater Midstream and Infrastructure Ltd. (TWM.TO)'s target price to $1.75 from $2.25 following a review of the company's expected operating levels amid volatile commodity markets.
The company's outperform rating was reiterated due to its niche positioning, compelling valuation and execution potential.
Credit Suisse also slashed Tidewater's EPS estimates to $0.24 from $0.29 in 2022 and to $0.19 from $0.22 in 2023.
According to Credit Suisse, Tidewater's stock focus is largely on PGR realizations and the capital program delivery, with upside existing from asset base expansion that is not in existing financial forecasts.
There are also selected areas for potential asset expansions not in Credit Suisse's base forecasts.
"We believe Tidewater trades at a discounted valuation - that which is partly a function of the unique asset base (midstream and refinery exposure) and the market cap (i.e., small- cap status)," Credit Suisse said.
"Given the unique niche regional exposure along with the structural reality of the renewable fuels business, we view believe the stock offers a compelling risk-reward relationship, combined with additional growth potential in the basin."