Stifel Canada upgraded its rating on the shares of Mattr (MATR.TO) to buy from hold and raised its price target on to $15.25 from $8.75.
Mattr reported a very strong first quarter, and raised 2026E EBITDA guidance by 7% compared with consensus, writes analyst Ian Gillies.
The company's CompTech facilities investments are beginning to pay with margins rebounding in the quarter, and Gillies believe there is more upside potential besides what is embedded in 2026E guidance.
There are still a number of quarters of strong performance required to drive a re-rate, but Gillies believes it is "unequivocally" inexpensive, and he likes the current set up.
"The stock is inexpensive with it offering an 8.4% FCF yield, and we believe the risk/reward is now favourable given the potential for further positive estimate revisions."
Price: $12.50, Change: $+0.65, Percent Change: +5.49%