TSX:AX.PR.E - Post by User
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MARKOPOLISon May 19, 2023 8:51am
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SCOTIA PRICE CUT TO $9
SCOTIA PRICE CUT TO $9 * Scotia Capital’s Mario Saric cut his Artis REIT (AX.UN-T) target to $9, remaining above the $8.85 average, from $10.50 with a “sector perform” rating.
“We’re reiterating our ‘Slight Positive’ take post an in-line Q1 almost exclusively on an expected re-acceleration in asset sales and associated debt reduction, and notwithstanding the ‘buy floating-rate debt’ trade being pushed out a bit further, in our view (given recent strong inflation readings),” said Mr. Saric. “Coming into the quarter, we felt significant market concern over AX liquidity position (Q4 = $136-million = 31 per cent of 2023 debt maturities) and ability to refinance a substantial amount of near-term debt. We felt AX expressed strong confidence in its ability to do so. Bottom-line, while we see below-avg. NAVPU [net asset value per unit] growth from AX, we do think debt refinancing could narrow the trading discount to NAV through Q2/Q3, providing some near-term relief to a struggling unit price