Dye & Durham Ltd T.DND

CIBC’s UPGRADED price Target $22 OUTOPERFORM rating

[alhiemstra]

CIBC’s Scott Fletcher raised his Dye and Durham Ltd.  target by $1 to $22, keeping an “outperformer” rating. The average target is $21.25.

“With DND having pre-released revenue, organic growth and leveraged FCF, our focus for the Q4 print was on net new profitability and ARR results, as well as the underlying drivers of organic growth and FCF,” he said. “Adj. EBITDA of $69.0-million (57.5-per-cent margin) was in line with consensus of $69.2-million, and ARR of $136.7-million was up 9 per cent sequentially due to subscription growth momentum. Revenue from real estate transactions remains pressured due to lower volumes, but generating 8-per-cent organic growth in a challenging environment highlights the potential upside once volumes return. With the BoC cutting rates by 0.25 per cent [Wednesday] morning and poised to continue to cut, we are optimistic on DND’s forward outlook. We acknowledge that the ongoing litigation and the pending Special Meeting will likely limit upside until resolved, but the business itself looks to be in good shape.”