Tidewater Midstream and Infrastructure Maintained at Buy at Stifel GMP, Price Target Raised, After Management Meeting
12:51 PM EDT, 07/13/2022 (MT Newswires) -- Stifel GMP on Wednesday reiterated its buy rating on the shares of Tidewater Midstream and Infrastructure (TWM.TO) while raising its price target to C$2.25 from C$2.15 following management meetings.
"We recently hosted Tidewater's management for a virtual business update. Tidewater Midstream's asset network continues to perform well, driven by record high refining crack spreads at PGR and strong customer demand on its natural gas infrastructure network," analyst Cole Pereira noted. "Crack spreads reached a record quarterly average of C$101/bbl in 2Q22E, and we estimate the current spot crack spread remains at C$101/bbl. We forecast a lower C$75/bbl in 2H22E and C$63/bbl in 2023E, but if spreads were to range from C$73-103/bbl in 2023E it would suggest 8-31% upside to our current EBITDA forecast. We forecast 2Q22E EBITDA of $65.4 mm vs. the Street at $62.5 mm. Tidewater continues to screen attractively as its near-term earnings upside from its refining business should "bridge the gap" between now and when its renewable diesel & hydrogen refinery comes into service in 1Q23E. Our Buy rating is unchanged, but our target price increases to $2.25/sh (prior: $2.15/sh)."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 1.24, Change: +0.02, Percent Change: +1.64