TSX:CEU - Post Discussion
Post by
retiredcf on May 16, 2023 11:16am
Raymond James
Still looking for close to a double. GLTA
Raymond James’ Andrew Bradford trimmed his CES Energy Solutions Corp. target to $4.40 from $4.75 with a “strong buy” rating. The average is $4.10.
“1Q Reported EBITDA was $77-million, which put it in-line with both the consensus ($76-million) and our own $77-million estimate,” he said. “We are reducing our estimates nonetheless, predicated primarily on the steepened downward trajectory in U.S. drilling.
“Given CEU’s share price today, the market is, in-effect, pricing the stock as though CEU’s EBITDA were about to drop more than 40 per cent from current run-rate levels to approximately $175-$200-millionn. Considering CEU’s market share gains in both U.S. drilling fluids and production chemistry over the last cycle, we think the market is over-pricing this downside scenario. We’re forecasting $298-million EBITDA for 2023, which is down from our prior $309-million estimate. Our reduced estimate implies a similarly reduced target price.”
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