CIBC Raises Enerflex's Price Target to US$25.50 from US$16.75
CIBC Capital Markets on Wednesday reiterated its neutral rating on the shares Enerflex (EFX.TO, EXFT) while raising its price target to US$25.50 from US$16.75 ahead of the company's first-quarter results.CIBC said it raised the price target towards the high-end of Enerflex's historical trading range of 7.0x 2026E EV/EBITDA, which is further supported by its sum-of-the-parts analysis of the earnings generation for the company.According to CIBC, the company's earnings stability along with the potential for growing power generation revenue, should see the shares trade at an expanded multiple versus prior."We believe the prospect of increasing revenues associated with power generation projects will drive an improved valuation metric for Enerflex moving forward," CIBC said. "Increasing demand for natural gas amidst the North American LNG export buildout, and expansion of data centers, remains supportive for the company's service offerings."Amid its optimistic outlook for Enerflex, CIBC noted that the company continues to generate a meaningful amount of EBITDA from jurisdictions that carry higher levels of geopolitical risk.Price: $32.42, Change: $+0.40, Percent Change: +1.25%
