TSX:DII.A - Post Discussion
Post by
nozzpack on Oct 15, 2021 10:27am
TD Says Dorel Willing to unlock Value
lobe says Dorel seen willing to unlock value
2021-10-13 09:11 ET - In the News
The Globe and Mail reports in its Wednesday edition that TD Securities analyst Derek Lessard has boosted his recommendation for Dorel Industries to "buy" from "hold."
The Globe's David Leeder writes that Mr. Lessard gave his share target a hefty boost to $46 from $15.50. Analysts on average target the shares at $31.
The share boost came following news that Dorel had sold its Dorel Sports bicycle segment to Pon Holdings for about $1-billion.
Mr. Lessard says, "Given the strong demand for bikes due to the pandemic, partially offset by uncertainties caused by the ongoing supply-chain and labour challenges, we believe that the valuation is fair."
Mr. Lessard says in a note: "We believe that it will take some time to pinpoint the appropriate valuation multiple, but we are upgrading the shares given
: 1) a management team that now appears more willing to sell businesses to unlock value;
2) receding supply-chain challenges in the long term;
3) a clean balance sheet;
4) renewed focus on growth opportunities;
5) returning capital to shareholders again;
and 6) an overly depressed share price.
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