Analyst Cameron Doerksen of NBC saidPositive investment thesis unchanged following Q4/23 report We maintain our Outperform rating on NFI Group shares following Q4/23 results. In January, NFI provided an update on expected Q4/23 results, demand, and multi-year guidance. There was little incrementally new with today’s actual Q4 results and outlook so our view remains unchanged: demand for buses is exceptionally strong and NFI has strong visibility on bus deliveries, higher pricing, and EBITDA growth through to 2025 and beyond that we expect will drive a higher share price over time. In addition, NFI will benefit from competitive changes in the North American market that have resulted in the U.S. market for heavy-duty transit buses effectively becoming a duopoly (NFI and privately held Gillig). Finally, potential contracting changes recommended by a government-industry taskforce in the U.S., including retroactive pricing adjustments and the institution of progress payments, will likely have positive implications for NFI’s cash collection and working capital management in future years (Flash on APTA taskforce recommendations). We value the stock by applying a 7.0x EV/EBITDA multiple to our 2025 forecast. With only minor adjustments to our forecast, our target remains C$18.00.