Analysts have been quite happy with Parkland Fuel (TSX: PKI) stock lately, with another positive rating update this time from Canaccord Genuity. Canaccord Genuity’s analyst Derek Dley reiterates their Buy rating on the shares today.
Dley commented:
“We believe the acquisition of Rhinehart provides Parkland with a platform that will allow the company to leverage its existing supply and wholesale infrastructure to a greater extent within the region. Additionally, given Parkland’s healthy balance sheet, which we estimate currently maintains leverage of 2.1x net debt to EBITDA, we expect the company to remain an active consolidator of downstream assets within its Parkland USA business.”
Dley has an average return of 27.3% when recommending Parkland Fuel.
According to TipRanks.com, Dley is ranked #438 out of 4847 analysts.
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Currently, the analyst consensus on Parkland Fuel is a Strong Buy with an average price target of C$44.42, a 10.1% upside from current levels. In a report issued on August 3, Scotiabank also reiterated a Buy rating on the stock with a C$38.50 price target.
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Parkland Fuel’s market cap is currently C$5.36B and has a P/E ratio of 36.8. The company has a Price to Book ratio of 3.17.
Parkland Fuel Corp. engages in the market and distribution of petroleum products. It delivers gasoline, diesel fuel, lubricants, heating oil and other products to businesses, consumers and wholesale customers. The company operates through the following business segments: Retail Fuels, Commercial Fuels, Parkland USA, Supply and Wholesale; and Corporate.
The company’s shares closed on Monday at C$40.34, close to its 52-week high of C$41.02.
