Scotiabank Scotia’s Konark Gupta bumped his Exchange Income Corp. target to $66 from $65 with a “sector outperform” rating. The average is $67.14.
“EIF posted continued solid double-digit EBITDA growth, beating expectations, despite y/y headwinds at Northern Mat that were offset by growth in other areas,” he said. “While Northern Mat’s year-over-year headwinds peak in Q3, management maintained guidance, which suggests EBITDA growth will remain strong in 2H. EIF continues to target $600-million-plus EBITDA in 2024 and is now eyeing $700-million over time. We have slightly raised our 2024/2025 outlook, reflecting the recent Manitoba medevac contract, and we continue to see further upside risk from potential contracts and/or M&A. In the near term, we think EIF is very likely to raise the dividend within months, given the payout ratio remains low and the last hike was a year ago.”