logo
  Join        Login             Stock Quote

Parkland Fuel Price Target Increased By CIBC, 'Sector Outperformer' Maintained

 March 08, 2012 12:51 PM


CIBC World Markets Inc. increased its price target on Parkland Fuel Corp. (TSX:PKI.TO) to $15.25 from $14.75, while maintaining its "Sector Outperformer" rating on the stock.

The brokerage tweaked its 2012 EBITDA estimate to $155 million from $161 million, having lowered the expected contribution from the Wholesale & Supply division. CIBC also rolled out its 2013 EBITDA estimate of $168 million as it forecasts volume growth of around 4 percent - 5 percent year over year.

PKI reported fourth-quarter EBITDA of $36.2 million, below CIBC estimate of $42.5 million. The main difference came from lower volumes related to a diesel supply disruption in AB, SK and BC. In addition, the warmer-than-normal weather was a $2.5 million EBITDA headwind in the quarter, CIBC noted.

[Related -Buffett's Market Indicator Flashes Red, Prepare To Sell]

The Bowden facility start-up has been pushed to fourth quarter of 2012 due to delays in securing a proper contract with its EPCM firm. CIBC views the start-up of Bowden as a key competitive advantage PKI has over other fuel marketers that will help offset the margin contribution from the expiring SU contract.

The stock, which has been trading between $8.07 and $14.30 over the past year, fell 1.9 percent to trade at $13.69 on Thursday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageBuffett's Market Indicator Flashes Red, Prepare To Sell

With each passing month, it's becoming evident that the current bull market has slowed from a gallop to a read on...

article imagePBoC joins other major central banks with unconventional monetary policy action

Softer than expected economic growth in China (see discussion) has finally spurred the PBoC into action. read on...

article imageA Buyback Boost?

Are stock buybacks the only thing keeping this bull market read on...

article imageGold Slides On Perfect Storm For Dollar

For all the anticipation surrounding the delivery of the Fed’s statement in the run-up to the September read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

A Buyback Boost?
More Articles on: Oils/Energy



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.