TD Securities TakeRecently, we reduced our 2023 EBITDA estimate to the low end of its guidance range to reflect a strong El Nio weather pattern, and our relatively unchanged estimates remain at the bottom end of the range.
NCIB: Superior renewed its NCIB, allowing it to purchase up to 12.4 million shares between now and November 9, 2024.
Board Succession: Michael Horowitz replaces Angelo Rufino as Brookfield's nominee to the Board of Directors, following Angelo Rufino's departure from Brookfield.
Conclusion: We believe Superior's core propane distribution business offers investors a resilient base of recurring free-cash-flow generation that will allow the company to continue to grow the Certarus business, deleverage, repurchase shares, and maintain the dividend. Certarus reduces the seasonality of Superior's operations, as shown in Q3/23 results, and provides Superior access to an early-stage, high-growth endmarket that offers fuel consumers an economic and environmental win-win. With our estimates largely unchanged, we are maintaining our BUY rating and $13.50/share target price.