RE:RE:RE:RE:Recent analyst reports or revised price targets? From Globe today - still don't understand zero mentions of possible pork markets disruptions from China - if US pork producers get hit again,it is impossible to see the US allow Canada to take up the extra trade from their farmers?
anyway --
National Bank’s Vishal Shreedhar trimmed his target for Maple Leaf Foods Inc. (MFI-T -5.33%
decreas
) to $26 from $28 with an “outperform” rating, while TD Cowen’s Michael Van Aelst lowered his target to $34 from $35 with a “buy” rating. The average is $
“Our upside/downside review suggests opportunity, although we recognize that MFI’s restructuring/track record underscore uncertainty,” Mr. Shreedhar said. “Optimistically, assuming normalized multiples and the midpoint of MFI’s 14-16-per-cent EBITDA percentage target by 2028, we calculate a stock price of $37 today (more than 70-per-cent upside). Conversely, assuming the 5-year historical low valuation and a 2028 EBITDA margin rate equal to Q3/24, we calculate a stock price of $17 today (22-per-cent downside).
“MFI’s spin-off is expected around mid-2025 (tax-free; prospectus in Q1/25). Assuming an EV/EBITDA multiple of approximately 6 times for NewCo and 11 times for RemainCo, we calculate more than 30-per-cent upside, all else equal. Notwithstanding a possible re-rate, we view better execution to be the key value driver for MFI (better ROIC, higher margins and consistent performance).