Superior Plus jumps after brokerages raise PT on $770-mln buyout deal for Certarus

Superior Plus

23/12/2022 16:54

(Adds share movement)
    ** Shares of Superior Plus Corp  SPB.TO  jump 6.5% to
C$10.84 after brokerages raise PT 
        ** Stock set for biggest pct. rise in more than two
years, if gains hold
  
    ** Brokerages raise Superior Plus Corp's  SPB.TO  PT after
$770 mln buyout deal for mobile low-carbon fuels provider
Certarus Ltd
    ** Raymond James raises SPB to "outperform", ups PT by
C$0.50 to C$13.50
    ** Says leadership position in complimentary end-markets,
management team with a solid track record and double-digit
accretion to SPB's distributable cash flow/share make it an
attractive bolt-on platform
    ** Brokerage now sees SPB reaching the lower end of its
$700-$750 mln EBITDA target by 2024, as opposed to 2026
previously
    ** ATB Capital Markets also raise SPB's PT by C$0.50 to
C$12.50, maintains "sector-perform"
    ** Says Certarus transaction expands SPB's customer base,
fuel distribution capabilities including high-demand low carbon
fuel alternatives, and reduces quarterly seasonality
    ** The acquisition has a strategic overlay with existing SPB
assets and also opens the door to new markets and customers -
Brokerage
    ** 6 of 11 brokerages rate the stock "buy" or higher and 5
"hold"; their median PT is $12.68
    ** SPB stock down 17% so far this year
 (Reporting by Arshreet Singh in Bengaluru)
 ((Arshreet.Singh@thomsonreuters.com))