RE:RE:just a guessOK. Here is the reference where RBC referred to a 2030 target of
$244 (RBC did not say maximum – they can’t, no one can).
Post by Tempo1 on Apr 05, 2024 11:16am RBC: Extracts from the full report About a 2030 target ?? 2030 upside potential. Factoring in the new growth drivers in CPO and Defense as well as steady services growth, we see line of sight to ~$13B in revenue, $2.6B in EBITDA and $1.2B in FCF by 2030E, inclusive of a major ramp of a $2B clean sheet program to 2030E. We see Defense and CPO contributing $1B in incremental revenue and services growing at a 5% CAGR from 2025-2030E. While our out-year targets are less certain and come with a higher degree of risk, we note this upside scenario provides an indication of what we think the company could look like by 2030 should it continue the trend of solid execution. Key is that we estimate execution in line with our out-year targets would represent roughly a 300% potential return versus current share price levels.
Upside scenario valuation Upside valuation of $244 (+339% implied return) reflects the execution on 2025 targets and new opportunities out to 2030. Our upside valuation of $244 incorporates new revenue opportunities from Defense and CPO materializing by the decade's end, providing $2B of combined revenue contribution. Along with steady services revenue growth we expect total revenue growth of +7% CAGR from 2025-2030. In our upside scenario, we forecast margin expansion to 20% by 2030 and incorporate the ramp up of clean sheet capex from 2027-2030 of $2B. Net-net this translates into $13B in revenue, $2.6B in EBITDA, and $1.2B in FCF by 2030.
All the best
Snowey