Exchange Income Corp T.EIF

National Bank

[retiredcf]

While touting “good visibility on growth, National Bank’s Cameron Doerksen trimmed his Exchange Income Corp. target to $65 from $67 with an “outperform” rating prior to its Nov. 9 earnings release. The average is $66.59. 

“On our updated 2024 forecast, the stock trades at 6.0 times EV/EBITDA versus the historical forward average for the stock of 7.7 times,” he said. “We view this current multiple as attractive, especially in the context of the strong contracted growth ahead for the company, the full impact of which will only be seen in 2025. Although our EBITDA forecast for 2024 moves modestly higher driven by the addition of the DryAir acquisition into our model, this is offset by slightly higher assumed debt levels and interest expense, the net result of which is that our target moves to $65.”