logo
  Join        Login             Stock Quote

Contrans Group Upgraded to 'Sector Outperformer' by CIBC

 November 13, 2012 03:48 PM


(By Balaseshan) CIBC World Markets Inc. analyst Kevin Chiang upgraded his rating of Contrans Group Inc. (TSE: CSS) to "sector outperformer" from "sector performer" with a price target of $11.

CSS reported a good Q3, Chiang noted. Net revenue of $112.8 million was in line with his expectations while EBITDA came in at $19.1 million versus his estimate of $18.5 million and consensus of $18.8 million. Acquisitions accounted for $9.3 million in revenue in the quarter with organic growth about 3 percent.

The company's Q3 reaffirmed the analyst's investment thesis that CSS is a defensive trucker with more limited downside risk and a good cash-flow story. Over the past two months though, the stock is off over 10 percent and, as such, effective Nov. 12 he upgraded the stock with his total return to target at 28 percent.

[Related -3 US Updates Show Ongoing Growth]

In addition, Chiang believes CSS will look to raise its dividend early next year (current dividend is $0.10 per quarter). He is forecasting a payout ratio (based on free cash flow) of 41 percent in 2012 and 31 percent in 2013.

The brokerage raised its 2012 EBITDA estimate to $71.6 million from $71 million and its 2013 estimate to $73.10 million from $73 million.

CSS is trading down 0.34 percent at $8.75 on Tuesday.

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 image3 US Updates Show Ongoing Growth

Three economic updates today provide more evidence that moderate growth endures for the US. The numbers du read on...

article imageBuy These Solar Stocks Before They Snapback

Sometimes the market hands you a gift. And it would be foolish not to take it. Thanks to general market read on...

article imageInvestors Are Even More Euphoric And Confident.

As noted on the blog last Thursday, even though the market had been down for three straight weeks, last read on...

article imageThe Butterfly Machine

There’s a phenomenon called the Butterfly Effect. One common quotation is “It has been said that something read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



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.