The Globe and Mail reports in its Tuesday, June 4, edition that National Bank Financial analyst Dan Payne has lowered his recommendation for Enerflex to "sector perform" from "outperform." The Globe's David Leeder writes that Mr. Payne trimmed his share target by a loonie to $9. Analysts on average target the shares at $10.40. Mr. Payne says in a note: "The primary cause for the downgrade comes as a function of a) its rank order scorecard position against the peers, b) perceived risk of execution, and c) prospects to re-establish market sentiment in support of multiple expansion as a result. Bottom line, the volatility and uncertainty delivered by the company have unseated market sentiment, and we believe any opportunity to re-establish that are likely long term in nature from here. The company continues to target a validation of its returns through stability, but which it has struggled to do through the integration of its Exterran merger as reflected through first quarter results that brought a recurrence of volatility (mixed relative to expectations). Of note, the provisions and commentary around its Kurdistan project, while relatively minor in their totality, continued to speak toward that unpredictability."
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