TSX:PLC - Post Discussion
Post by
retiredcf on Jan 06, 2021 12:42pm
TD Upgrade
They have bumped their target by a buck to $34.00. GLTA
Special Situations Coverage Update
Introducing 2022 Estimates and Updating Target Prices
We are introducing F2022 estimates and updating our target prices across the majority of our Special Situations coverage universe. Our target price changes primarily reflect: (1) the rolling forward of target price calculations to be based on F2022 EBITDA (versus F2021 EBITDA for most of our coverage previously); and (2) fine-tuning of target price multiples to reflect the more bullish market sentiment, particularly with respect to smaller cap and value names, on the back of the COVID-19 vaccine. Exhibit 2 illustrates the changes to our target prices and valuation multiples. In addition, we have made changes to our 2020/2021 forecasts for several names (see Exhibit 3). Note, we have not made any rating changes in this note.
Our 2021 Sector Outlook: While our Special Situations coverage encompasses a wide range of industries, products/services, end-market customers, and fundamental drivers, we expect broadly improved results in 2021 reflecting our expectation for relaxed social distancing measures in H2/21 alongside the COVID-19 vaccine. Furthermore, we have been impressed with the pace and magnitude with which many companies have been able to ratchet-down their expense base (e.g. CCL, CIGI, and ITP) and see potential for this to drive margin beats as revenues recover across 2021. We anticipate M&A continuing to be a major theme given the significant dislocation caused by COVID-19. Companies that we see with the greatest potential to execute material acquisitions include: FirstService Corp. (FSV-N/T); Colliers International Group Inc. (CIGI-N); Park Lawn Corp. (PLC-T); and Transcontinental Inc. (TCL.A-T). Furthermore, we expect a continued stream of tuck-in acquisitions from Boyd Group Services Inc. (BYD-T); GDI Integrated Facility Services Inc. (GDI- T); Superior Plus Corp. (SPB-T); and CCL Industries Inc. (CCL.B-T).
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