TSX:DHT.UN - Post by User
Comment by SONOFFERGUSon May 14, 2025 5:50pm
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Post# 36574082
RE:RE:RBC Raises Target
RE:RE:RBC Raises TargetGreat news for DHT overshadowed by bad news for big pharma, down 7+% since last week thanks to Trump's executive order.
I am waiting for the earnings transcript, but it sure sounded to me that DHT sees the units as extremely undervalued and is looking to reward its institutional investors for sticking with them.
As you say, if they fire up the NCIB on Tuesday then SP is going to move up fast. They were buying in the $14s last summer, and NAV has gone up a lot since then. They are waiting to book deals until the ground stops moving, so what else are they going to do? Q2 is half-way done and they have nothing to talk about. The buyback will be the headline.
CEO has been taking his comp in cash and the mgmt bonus formula has been set at a nice low unit price, which means to me that they're going to buy buy buy.
It is of course difficult to separate the state of pharma as a whole from DHT's position in the space. It is hard to see how Trump looking to get cheaper Ozempic for Medicare/Medicaid as hitting DHT's portfolio unless things get really crazy. It's also hard to see how Chairman Trump's executive order survives the courts. IMHO, the vibes for pharma are going to turn soon and that will put more wind in DHT's sails.
Anyway, whatever, WTFK. GLTA long-suffering longs.