Credit Suisse Increases Tidewater's Target Price To $2.25 From $2.00
09:38 AM EDT, 06/03/2022 (MT Newswires) -- Credit Suisse said Friday that it increased Tidewater Midstream and Infrastructure Ltd. (TWM.TO)'s target price to $2.25 from $2.00 with an outperform rating.
Credit Suisse highlighted Tidewater's positioning at the Prince George refinery, which acts as a clear catalyst to cash flows in the near term.
"To us, TWM offers niche energy infrastructure exposure in Western Canada at an attractive discounted valuation - especially on a net asset value basis," Credit Suisse said.
Credit Suisse said the company's near-term focus is on realizations at Prince George along with delivery of the capital program. In addition, upside exists from an expansion of the asset base that is not in existing financial forecasts.
"The delivery of the group's various projects along with an, arguably, increased focus on coherently building and enhancing the connectivity of networked assets, should result in an ongoing re-rating of the stock," Credit Suisse said.
"Given the unique niche regional exposure along with the structural reality of the renewable fuels business, we view believe the stock offers a rather compelling risk-reward relationship, combined with additional growth potential in light of basin dynamics."
Credit Suisse increased Tidewater's estimated EPS to $0.29 from $0.19 in 2022 and to $0.22 from $0.17 in 2023.
Price: 1.61, Change: +0.02, Percent Change: +1.26