BMO Capital analyst Joel Jackson has reiterated their bullish stance on CHE.UN stock, giving a Buy rating on August 16.
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Joel Jackson has given his Buy rating due to a combination of factors that highlight Chemtrade Logistics’ strong financial position and strategic growth initiatives. The company has consistently delivered positive surprises with its financial performance, maintaining a solid balance sheet with approximately 2x leverage. This financial stability allows Chemtrade to engage in strategic activities such as redeeming convertible notes, acquiring Polytec, and repurchasing shares, all of which contribute to shareholder value.
Additionally, Chemtrade’s operations have shown resilience across various segments. The company has not been impacted by tariffs due to USMCA compliance, and while there is some margin pressure in water treatment due to rising input costs, the overall outlook remains positive. The acquisition of Polytec is particularly promising, with potential revenue opportunities through leveraging its products across Chemtrade’s North American platform. Furthermore, the stable pricing of caustic and improving trends in chlorate and HCl demand further support the company’s growth prospects. These factors collectively justify the Buy rating and the target price set by Joel Jackson.
In another report released on August 16, TR | OpenAI – 4o also upgraded the stock to a Buy with a C$14.00 price target.