Ironically a downgrade....but with a $10 target is still 40% upside ... Cheers
Dexterra Group Downgraded to Outperform at Raymond James
07:44 AM EDT, 05/12/2022 (MT Newswires) -- Dexterra Group Inc. (DXT.TO) was downgraded to Outperform from Strong Buy at Raymond James.
Analyst Frederic Bastien lowered his price target on shares of the Canadian business management and software services company to $10 from $12.
"Dexterra's ambitions to build an infrastructure support services champion are gradually coming into focus," Bastien said in a note to clients. "The company is taking advantage of a strong commodity price environment for its WAFES segment to scale its Facilities Management (FM) business and accelerate its transition to a diversified and asset-light business model."
"We approve of the recent acquisitions of Dana and Tricom, in particular, since they augment DXT's position in verticals that will profit disproportionately from reopening economies (including transit, education, hospitality, and entertainment)," the analyst said. "Unfortunately, Modular Solutions (MS) has disappointed for a few quarters, a trend unlikely to reverse soon with inflationary cost pressures now hitting the segment."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)