Exchange Income, the Industrials sector company, was revisited by a Wall Street analyst on September 26. Analyst Michael Goldie from BMO Capital maintained a Hold rating on the stock and has a C$69.50 price target.
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Michael Goldie’s rating is based on a combination of factors that reflect both positive developments and cautious considerations for Exchange Income. The analyst has revised the earnings per share estimates upward due to adjustments in depreciation and interest expense assumptions, particularly related to the acquisition of Canadian North and the delivery of new aircraft. This indicates a positive outlook for the company’s financial performance in the near term.
However, despite these positive adjustments, Goldie maintains a Hold rating due to the elevated trading levels of the company’s shares from a price-to-earnings perspective. While there are growth opportunities, especially at the EBITDA level, the current share price limits the potential for significant returns. Additionally, the company’s efforts to manage its capital structure and the modest increase in long-term manufacturing assumptions contribute to a balanced view, supporting the Hold rating.
EIF’s price has also changed dramatically for the past six months – from C$50.760 to C$72.460, which is a 42.75% increase.