National Bank out with $8.50 price target National Bank Cuts Price Target on Dexterra Group After Q4 Results Were Below Estimates, Consensus
01:02 PM EDT, 03/13/2023 (MT Newswires) -- National Bank on Sunday downgraded the price target on Dexterra Group Inc. (DXT.TO) to $8.50 from $10 after the company reported its fourth-quarter results below its estimates and consensus, driven primarily by a large provision in the Modular segment.
"Adjusting our expectations on the back of Q4 results with slightly lower estimates, we cut our target to $8.50 (was $10) based on an updated sumof-parts methodology on 2024e EBITDA: 8x IFM (was 9x), 6.5x WAFES and 6.5x Modular (was 9x) to reflect a more volatile earnings profile," the analysts added.
"Without the drag from future losses in Q4/22, Modular's Adj. EBITDA would have clocked in at ~$1.4 million, bringing consolidated Adj. EBITDA to ~$22 million and Adj. EPS to $0.09, beating our forecasts," the analysts said.
National Bank reiterated its outperform rating based on significantly compressed valuation and still attractive free-cash-flow generation.
The company's shares fell 3.3% on last look on Monday.
Dexterra Group is a diversified support services platform.
Price: 5.26, Change: -0.18, Percent Change: -3.31