Raymond James Raises TargetRaymond James’ Michael Glen raised his Savaria Corp. target to $27.50 from $25 with an “outperform” recommendation. The average is $24.75. “We had an opportunity to speak with Sebastien Bourassa, President and Chief Executive Officer of Savaria, for a general business update and gather some additional insights into ongoing progress with the Savaria One (S1) transformation program. Coming out of the call, we are making modest positive revisions to our 3QF24 and F2025 estimates in the Accessibility segment. We are also moving our valuation forward to F2025/F2026 to start reflecting what the business and operations will look like exiting the S1 program next year. With that, we are increasing our price target,” said Mr. Glen.
“Within our coverage, Savaria currently represents one of the best improving ROIC trends over our forecast period. ... We have seen Savaria’s ROIC move notably higher in 1H24 and we expect continued improvements on this figure, which many investors view as a critical screening metric. It is becoming quite clear that the ongoing benefits stemming from the S1 transformation program are outpacing expectations, and we would expect positive updates on progress and gains to continue well through 2025.”