FormerXBC Inc XEBEQ

Remember this? Not much more than a year ago..

[tamaracktop]

TD Investment Conclusion:

Based on its transformative acquisition of a hydrogen production platform, its increased market capitalization, and its upcoming move to the TSX, we believe that Xebec is well-positioned to experience increased funds flow and re-rate from a valuation perspective. Specifically, we believe that Xebec checks several boxes for growth-oriented investors, including: environmentally-focused trends that underpin its growth, strong insider ownership (CEO: ~5%), a track-record of successful project execution, including full-cycle service, profitability, and a preferential portfolio of technologies that sets it apart. Although a presumption of future growth is reflected in Xebec’s forward-year valuation multiples, we believe that our NAV calculation better reflects the intrinsic value and implies a much higher valuation. As a result, we are resuming coverage on Xebec Adsorption Inc. (XBC-V) with a BUY rating and $12.50 target price.

December 31, 2020

And what's his target now???

[Ciao]

A much higher valuation from it's exposure to hydrogen, now some are putting stodgy industrial gas multiples to the valuation to "put it in line" with the current share price (a share price depressed by shorting activity).

[justus434]

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[tony08]

If you allow me TT, I would complete by adding this: What's his target now and what justifies such a drastic change of target?? In his analysis he explains why he lowers his target, but nothing in his explanations justifies such a low level.

[Gann999]

The analysts have no reason really. They saw the market revalue everything and therefore reduced their multiples accordingly to match the share price which in turn caused further selling because nobody likes downgrades. At some point the only direction to go will be up the question is when?