The Globe and Mail reports in its Friday, Aug. 23, edition that CIBC World Markets analyst Mark Jarvi upgraded Just Energy Group to "neutral" from "underperformer" with a $2 share target. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $4.01.
Mr. Jarvi says in note: "We only recently downgraded the shares to Underperformer following the poor FQ1/20 results that were accompanied with a guidance cut, higher impairment expense than prereleased, and a decision to suspend the dividend. However, with its current valuation down 30 per cent in the last week (vs. the TSX Composite at 1 per cent), the shares now sit below our $2 price target. We believe there is less downside risk at current levels. While we acknowledge there continues to be operational and financial risks on this name, and therefore believe investors should be cautious, we believe the potential of a partial or outright sale that could surface some value creates a more balanced upside/downside setup for the stock."
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