Analyst upgrades... Raymond James’ Frederic Bastien increased his Black Diamond Group Ltd. target to $10 from $8 with a “strong buy” rating, while BMO’s John Gibson bumped his target to $8.50 from $7 with an “outperform” rating. The average is $8.04.
“After what seemed like an eternity, investors are finally waking up to the Black Diamond opportunity,” said Mr. Bastien. “They are coming upon a broadly diversified Modular Space Solutions (MSS) segment that is driving stable and predictable growth (per its 5-year rental revenue CAGR of 20 per cent), a de-risked Workforce Solutions (WFS) business that is delivering significant operating leverage, and a disruptive digital platform that is approaching a critical revenue milestone.
“BDI is leading our Infrastructure & Construction (I&C) stocks with a year-to-date gain of 41 per cent that makes the TSX’s 5-per-cent advance look dismal in contrast. But with good visibility on rate increases, an expanded presence in the attractive Ontario education sector, and limited exposure to the vulnerable residential and commercial construction sectors, we believe the stock has a lot left in the tank.”