Revised TargetsAs always, I simply post what I can find and you can do what you like with it. GLTA
Scotia’s Adam Buckham lowered his Dentalcorp Holdings Ltd. target to $15 from $16 with a “sector outperform” rating. Other changes include: Canaccord Genuity’s Tania Armstrong-Whitworth to $15.50 from $18 with a “buy” rating, Desjardins Securities’ Gary Ho to $14.50 from $15.50 with a “buy” rating, CIBC’s Scott Fletcher to $13.50 from $16.50 with an “outperformer” rating and RBC’s Doug Miehm to $15 from $18 with an “outperform” rating. The average is $14.86.
“We continue to like DNTL in this volatile macro backdrop,” said Mr. Buckham. “As we highlighted in our recent launch, we see DNTL as not only a solid double-digit compounder but a name that is protected from potential economic turbulence on the horizon. This comes from the essential nature of services along with industry pricing which offsets inflationary pressure (although there is a lag). We agree that leverage/interest rates represent a potential headwind when the top of this hiking cycle remains uncertain; however, to us, this is at least partially offset by expected reductions in the average multiple paid, the recent fixing of 50 per cent of DNTL’s debt, and the potential to drive stronger operating leverage in the near-term. While we reduce our target price by $1 to reflect a slightly lowered near-term outlook (3-per-cent decline in 2023 estimated EBITDA), our thesis on the name remains unchanged.”