Related Articles
Mining & Metals
Market Chatter: Alberta Oil Pipeline to Cost Sector More Than C$100 Billion, Imperial Says
Alberta's proposed million-barrel-a-day pipeline to the British Columbia coast will require Canada's oil industry to invest more than C$100 billion ($72.5 billion), the chief executive officer of Imperial Oil Ltd. says, Bloomberg is reporting Thursday.Industry will need to invest capital in growing production to fill the new line, make shipping commitments, as well as invest in a carbon capture project mandated by the federal government, John Whelan said at the Energy Roundtable conference in Calgary. The total cost is "north of a hundred billion dollars that we will need to attract to this industry," he said. "Now I think we can do that, but that's kind of scale of what we're talking about."Thursday's report noted Alberta Premier Danielle Smith proposed a new pipeline to the west coast as part of her goal to eventually double oil production in the province. Canadian Prime Minister Mark Carney has pledged to back the new pipeline in exchange for a series of measures including a higher industrial carbon tax and the deployment of a long-planned carbon capture project in the oil sands, called Pathways, to reduce emissions, it also noted.Alberta plans to roll out details of the new pipeline, including the planned route to the coast, by July for federal approval by October, the report says. But Alberta's preferred northwest route faces stiff pushback from Indigenous groups in BC as well as the province's Premier David Eby. The project may also require a lifting of a moratorium on oil tankers if the pipeline goes to the northern BC coast, which Smith wants, it adds.Construction could start late next year, the government has said.(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
$CLN6$IMO.TO$LCON6$USO
Mining & Metals
RBC Maintains The Descartes Systems Group's Outperform Rating and US$126.00 Price Target
RBC Capital Markets maintained its outperform rating on the shares of The Descartes Systems Group (DSG.TO, DSGX) and its price target of US$126.00 on Thursday, and provided a first-quarter preview for the company.Descartes is reporting Q1/ FY27 on June 3, said RBC.RBC expects Descartes to report Q1 "moderately above consensus", driven by organic growth momentum against conservative consensus estimates."We expect Q1 revenue up 15% Y/Y to (US)$195MM, above consensus at (US)$191MM," said RBC.The upside compared to consensus reflects sustained organic growth momentum, along with overly conservative consensus estimates, it added."Due to operating leverage, we forecast Q1 adj. EBITDA up faster than revenue (19% Y/Y) to (US)$89MM, modestly above consensus at (US)$87MM and ahead of Descartes's long-term target of 10-15% growth," said RBC. "Similarly, we forecast GAAP EPS of (US)$0.54, slightly above consensus at (US)$0.52."RBC expects organic growth to stem from upselling, market share gains, e-commerce momentum, and increased adoption of customs filing solutions, despite a continued mixed trade environment."Our Q1 revenue estimate equates to 118.6% of baseline, in line with Descartes's TTM average and down from 119.7% last quarter," RBC said. "We believe consensus at 116.6% of baseline is overly conservative and likely assumes 50 bps Q/Q organic growth deceleration."With likely continued organic growth and contribution from the US$28 million Idelic acquisition, RBC expects Q2 baseline to exceed consensus as well."We believe Descartes may provide Q2 baseline of (US)$169MM revenue and (US)$66MM adj. EBITDA, implying Q2 actuals of (US)$200MM (11% Y/Y) and (US)$92MM adj. EBITDA (15% Y/Y), slightly above consensus at (US)$199MM and (US)$91MM," RBC added.RBC sees Descartes's valuation as "compelling", given RBC's forecast for 15% adj. EBITDA CAGR and 18% FCF/ share CAGR over the next 2 years.Its price target is unchanged and remains based on 25x CY27e EV/EBITDA, RBC stated."We see attractive risk-reward on the shares, given valuation near 10- year lows," added RBC. "Maintain Outperform."
$DSG.TO$DSGX
Mining & Metals
Stifel Canada Raises Knight Therapeutics Price Target to $9.50 on Q1 Beat, Outlook
Stifel Canada lifted its price target on the shares of Knight Therapeutics (GUD.TO) to C$9.50 from C$7.45 and reiterated its buy rating after the company reported a first-quarter earnings beat.Analyst Justin Keywood notes that the stock has re-rated sharply year-to-date on better than expected contribution of the Paladin/Sumitomo acquisitions and the 30% Paladin headcount reduction."Q1 sales +68.5% y/y and EBITDA, +130%, demonstrates synergies and strength is expected to continue with record setting temperatures (Super El Nino) in the LATAM region, correlated to infectious disease product demand (~35% of Knight's portfolio)," Keywood writes.Knight's runway of new launches in the coming one to two years, and "a bundling into its existing field force" could boost its long-term growth trajectory and FCF profile.Price: $7.92, Change: $-0.14, Percent Change: -1.68%
$GUD.TO