2 Upgrades In response to the release of its third-quarter results on Wednesday, CIBC World Markets’ Scott Fletcher raised his Dye & Durham Ltd. (DND-T) target to $28, exceeding the $26.43 average, from $25 with an “outperformer” rating, while Raymond James’ Stephen Boland raised his target to $25 from $23 with an “outperform” rating.
“Dye & Durham reported FQ4 results that narrowly exceeded the upper end of guidance while slightly topping the low end of the guidance range on Adjusted EBITDA,” said Mr. Fletcher. “Revenue in the quarter was 3 per cent below our above-guidance estimate as improving quarter-over-quarter housing transaction revenue appears to have been offset by slightly lower-than-expected non-housing transaction revenue. While housing transactions remain a substantial piece of DND’s business (58 per cent of FQ4 revenue), ARR growth has been strong as new go-tomarket efforts and M&A have focused on adding recurring revenue. Looking forward, management is targeting 20-25-per-cent growth in Adjusted EBITDA in 2024, split 50/50 between organic and acquired growth. With Canadian housing showing signs of stabilizing over the summer and strong momentum in ARR growth, we retain our Outperformer rating.”