Bullboard - Stock Discussion Forum Park Lawn Corp T.PLC

Consumer Cyclical Personal Services

Park Lawn Corporation is engaged in providing goods and services associated with the disposition and memorialization of human remains. The Company and its subsidiaries own and operate businesses, including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. Its primary products and services are cemetery lots, crypts, niches, monuments, caskets, urns and... see more

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TSX:PLC - Post Discussion

Park Lawn Corp > CIBC Upgrade

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Post by retiredcf on Sep 07, 2021 9:04am

CIBC Upgrade

EQUITY RESEARCH
September 3, 2021 Earnings Update
PARK LAWN CORPORATION LIMITED

Big Equity Raise = Big Deals Ahead?

Our Conclusion

We are resuming coverage of PLC following the closing of the company’s $148.5 million equity issue(4.08 million shares, including exercise of the 10% over-allotment, at $36.40 per share). We believe PLC is setting up its balance sheet to execute on a significant deal pipeline. We have increased our acquisition assumptions; our adjusted EBITDA estimate for 2022 increases ~15% to $128 million on a~14% revenue forecast increase. Finally, we are bumping up our price target from $40.00 to $45.00 based on slightly increased multiples applied to our 2022 estimates: 13.0x EV/EBITDA (from 12.5x) and 26x P/E (from 25x). We reiterate our Outperformer rating.

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