-- CIBC Capital Markets upgraded its rating on the shares of Superior Plus (SPB.TO) to outperformer from neutral, while maintaining an $8.00 price target.
Analyst Robert Catellier views Superior Plus's decision to accelerate investment in data center opportunities at its Certarus subsidiary as offering attractive diversification at a time when core wellsite activity has softened.
On Monday, Superior Plus announced multiple new contracts tied to hyperscale data center development, including a 2.5-year agreement supporting a project alongside a "global power generation partner". Certarus will supply natural gas to support ~135 MW of power generation once the facility enters service in mid-2027, with expected lifetime revenue of ~US$300 million.
While the customer has not been identified, Catellier's best guess is it is private equity-owned Aggreko as its public-facing disclosures name Certarus as its CNG partner. The project will require 200 CNG transport trailers.
"While details on contract scope and capital requirements remain limited, we believe the opportunity has the potential to drive a meaningful uplift to medium-term growth," Catellier writes.
Price: $7.31, Change: $+0.17, Percent Change: +2.38%