Raymond James Raises TargetAdded a few more this morning. GLTA
Raymond James’ Daryl Swetlishoff bumped his Atlas Engineering Products Ltd. target to $2.40 from $2.25, keeping a “strong buy” rating. The average is $2.42. “As detailed in our [Sept. 11] Initiation Report, Atlas offers material earnings growth from: 1) high leverage to Cdn housing activity; 2) margin growth/stabilization from the integration of past transactions; and, 3) future M&A and robotics-driven organic growth,” he said. “[Monday] before market, Atlas demonstrated progress on its nationwide truss roll-up strategy announcing a $3.8-million acquisition (anticipated to close in 1H25). While exact details have yet to be released, we estimate the transaction to be immediately accretive post close with additional synergies to layer in following integration. Assuming cash and equity financing in line with historic deals (70/30) and an incremental 1.5 million run-rate EBITDA (post synergies) boosts our target to $2.40/sh (from $2.25 previously) backstopping our Strong Buy rating. We look forward to further colour on Atlas’ M&A and automation strategy during the full slate of institutional investor meetings Raymond James is hosting with company management in Toronto [Tuesday].”