-- Stifel Canada on Tuesday reiterated its buy rating on the shares of Superior Plus (SPB.TO) and its C$9.00 price target ahead of the company's first-quarter results.
"SPB reports Q1/26 results AMC May 13th. It has been well-telegraphed that Q1/26 will see a continuation of the operational challenges in propane that will offset an otherwise favorable winter backdrop. Based on heating degree days it was 6% and 2% colder than the five-year average in the U.S. and Canada, respectively. However, we expect propane discussions to take a back-seat to Certarus given the combination of: 1) potential for improving O&G activity this summer, and 2) the recently announced multi-year data center contract (see here). The key focus for the conference call will be the economics of the new data center supply contract (and how SPB will stick-handle the capex), and what the spring/summer drilling outlook is (both activity levels and competitive dynamics/pricing in West Texas). SPB remains a company in transition, but we think the platform holds significant optionality at the current valuation," analyst Daryl Young wrote.
(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)
Price: $7.47, Change: $+0.01, Percent Change: +0.13%