Q: Your thoughts on this company going forward. They have made some acquisitions so wondering if this has some potential to move. One view is fair value would be about $73. Do you think they can get there and is this value reasonable?
Thank you
Thank you
5i Research Answer:
There is ample balance sheet flexibility to allow for more acquisitions. Further expansion in the US or other areas of service can definitely lead to potential M&A activities as it has before. There is decent growth expected over the next few years with margin expansion and integrations to be the primary goal. It is more attractive now at 14x forward earnings (lower end of the five-year range) and with CGY being debt-free and with solid growth, things look good. We don't do price targets, however, we do think that is achievable.