Distinct Infrastructure (TSXV: DUG), the Utilities sector company was revisited today, and remains overvalued for at least one analyst on the street. Analyst Yuri Lynk from Canaccord Genuity rated Distinct Infrastructure (TSXV: DUG) a Sell, setting a C$0.60 price target.
Lynk commented:
“We are reiterating our SELL rating on Distinct Infrastructure Group (DIG) and lowering our target price to C$0.60 from C$1.00. We cannot recommend DIG shares with the company in breach of the debt covenants pertaining to its revolver and term loan and in active negotiations with the lender on refinancing options. We believe the odds of a shareholder-friendly “amend and extend” agreement have weakened given the fact negotiations with the lender have now dragged on for months. In our view, the risk of a less favourable outcome, such as a forced equity issue, cannot be ruled out. A positive outcome here could cause us to reassess our current rating.”
Lynk has an average return of 2.6% when recommending Distinct Infrastructure.
According to TipRanks.com, Lynk is ranked #637 out of 4866 analysts.
Currently, the analyst consensus on Distinct Infrastructure is a Hold with an average price target of C$1.53.
The company has a one-year high of C$1.69 and a one-year low of C$0.70. Currently, Distinct Infrastructure has an average volume of 34.5K.
Distinct Infrastructure Group, Inc. offers solutions to telecommunication and cable companies, electrical providers and government operated utilities. Its services include aerial construction, underground construction, technical services and third party material management. The company was founded on September 19, 2012 and is headquartered in Toronto, Canada.
The company’s shares closed on Tuesday at C$0.79, close to its 52-week low of C$0.70.
