Analyst upgrades - Comments from G&M The following was in the Globe & Mail this morning for analyst actions. Two upgrades.
Scotia Capital’s Robert Hope raised his Tidewater target to $1.50 from $1.30 with a “sector outperform” rating, while Stifel’s Cole Pereira bumped his target to $1.25 from $1.15. The average is $1.34.
“We have a favourable view of this transaction given it crystalizes the value of assets Tidewater developed and expansion opportunities that we do not believe were reflected in its share price,” said Mr. Hope. “It also meaningfully reduces its leverage position, which is another positive. Our target increases ... to reflect the monetization of these assets at a value higher than what we were carrying them at. We see considerable valuation expansion potential in the shares ahead as the renewable diesel project ramps up to full utilization (very near term) and the company further moves down leverage. If the shares do not re-rate higher over the next year, we believe Tidewater will look to other actions to surface value such as further asset sales or a simplification of its corporate structure.”