Aug 11 - report for the 'niche energy infrastructure' TWM Credit Suisse Says Tidewater's Stock Offers Compelling Risk-Reward Relationship
10:31 AM EDT, 07/22/2022 (MT Newswires) -- Credit Suisse said Friday that Tidewater Midstream and Infrastructure Ltd. (TWM.TO) trades at a discounted valuation partly due to its unique asset base (midstream and refinery exposure) and its small-cap status.
Given the unique niche regional exposure along with the structural reality of the renewable fuels business, Credit Suisse believes the stock offers a compelling risk-reward relationship, combined with additional growth potential in the basin.
Credit Suisse said Tidewater continues to successfully surface value from the portfolio, albeit some of this dynamic is not reflected in the current market value for the stock.
Tidewater offers Western Canadian niche energy infrastructure exposure at an attractive discounted valuation - especially on a net asset value basis along with a stub view given the ownership position in Tidewater Renewables Ltd., Credit Suisse said.
Credit Suisse forecast Tidewater's second-quarter EBITDA at $55 million. The company will report its second-quarter results on Aug. 11.