or
Remember me
Back
* IA Capital Markets’ Naji Baydoun bumped his Supremex Inc. target to $10 from $9.50 with a “buy” rating. The average is $9.58.
“On the envelope side, SXP has stabilized its business and optimized its asset base to serve U.S. clients; coupled with pricing power in Canada, the Company has improved its envelope profitability and is gaining market share to help offset volume declines,” he said. “In packaging, the focus remains on utilizing excess capacity to pursue growth opportunities in the key folding carton and ecommerce verticals. On the M&A front, the recently completed acquisitions have the potential to generate significant incremental revenue and EBITDA for SXP once fully integrated (we estimate 5-10-per-cent upside to run-rate expectations). Overall, we view the recent pullback in the stock as an attractive buying opportunity for investors given (1) the significant upside potential (more than 100 per cent by our calculations), and (2) limited downside risks (5 per cent by our estimate) that we see in the shares.”