The Globe and Mail reports in its Tuesday, May 16, edition that despite dropping his target price for shares of Badger Daylighting in reaction to its weaker-than-expected first quarter results, Industrial Alliance Securities analyst Elias Foscolos upgraded his rating based on price weakness.
The Globe's David Leeder writes in the Eye On Equities column that Badger shares dropped over 14 per cent on Friday following the release of its financial results, while influential short seller Marc Cohodes disclosed he has been shorting the company for four months. Badger posted quarterly revenue of $102-million, down 8 per cent from the previous quarter and "significantly" lower than Mr. Foscolos's estimate of $114-million with lower-than-projected results on both sides of the border. Earnings before interest, taxes, depreciation and amortization of $20-million represented a 31-per-cent drop from the previous quarter and fell $10-million below the analyst's estimate. With a rating of "buy," up from "hold," he lowered his target to $29.50 from $35.50. Analysts on average target the shares at $31.75.
His new target represents a 14-per-cent one-year return, which he says justifies his rating upgrade.
© 2024 Canjex Publishing Ltd. All rights reserved.