Desjardins Securities’ Frederic Tremblay raised his Savaria Corp. target by $1 to $26 with a “buy” rating. “We held institutional marketing meetings with CEO Sebastien Bourassa, CFO Steve Reitknecht and VP, Corporate Development Nicolas Rimbert,” said Mr. Tremblay. “The meetings underscored the roaring start of Savaria One and that this program still has lots of gas left in the tank to bring the company to the 2025 margin target of 20 per cent.”
He added: “SIS is not just a 2024–25 story; our scenario analysis for 2026–27 shows a potential share price of over $40. With the Savaria One program on track to be completed in 2025, we believe that management could share details on its next multi-year plan/ ambitions in late 2025 or early 2026. In this note, we are taking a first stab at it by presenting two-year scenarios for 2026–27. With or without M&A, we believe that SIS would remain an attractive investment proposition based on the company building on a solid foundation and our scenarios supporting a share price potentially exceeding $40.”