Hardwoods Distribution Inc (TSX: HDI), the NA sector company, was revisited by a Wall Street analyst today. Canaccord Genuity’s analyst Yuri Lynk reiterates their Buy rating on the shares, with a C$24 price target.
Lynk commented:
“We are reiterating our BUY rating but reducing our one year target price on Hardwoods shares to following model refinements. Hardwoods is performing well despite uneven North American housing market data and margin pressure stemming from the US trade case against Chinese hardwood plywood. However, after reviewing our model, we felt our H2/2018 and 2019 estimates were nevertheless too aggressive and have adjusted accordingly, explaining the reduction in our one-year target price. We stay BUY rated ahead of the return to y/y growth in Q3/2018 as comps ease while noting Hardwoods’ undemanding valuation and balance sheet optionality. Our target is based on 13x 2019E EPS. Investment highlights The North American building materials group has thus far underperformed in 2018. To date, the average return for the group has been (19.9%), compared to the S&P/ TSX index which has returned 0.7%.”
According to TipRanks.com, Lynk is ranked #637 out of 4866 analysts.
Hardwoods Distribution Inc has an analyst consensus of Moderate Buy, with a price target consensus of C$24.
The company has a one-year high of C$22 and a one-year low of C$16. Currently, Hardwoods Distribution Inc has an average volume of 24.2K.
Hardwoods Distribution, Inc. engages in the sourcing and distribution of architectural grade building products to the residential and commercial construction sectors. Its products include hardwood lumber, decorative surfaces, and composite panels. It operates through the Canada and United States geographical segments.
The company’s shares closed on Friday at C$17.11.
