Altus Group has price target cut at RBC

Following the company’s fourth quarter results, RBC analyst Paul Treiber has cut his price target on Altus Group (Altus Group Stock Quote, Chart, News, Analysts, Financials TSX:AIF).

On February 20, AIF reported its Q4 and fiscal 2024 results. In the fourth quarter, the company posted Adjusted EBITDA of $32.4-million on revenue of $135.5-million, a topline that was up 3.4%, year-over-year.

“I’m incredibly proud of our team for finishing the year on such a strong note,” CEO Jim Hannon said. “In 2024, we achieved record performance at analytics — $411-million in revenue and $117-million in adjusted EBITDA, with an adjusted EBITDA margin of 28.5 per cent, our highest in a decade. Throughout the year, we delivered significant product enhancements, streamlined our portfolio, won outstanding new customers and deepened relationships across our expanding client base. This success fuelled cash flow growth and reinforced our momentum even as the industry navigated a challenging cycle.”

As reported by The Globe and Mail, Treiber February 21 maintained his “Outperform” rating on AIF, but chopped his price target on the stock from $62.00 to $56.00.

“Q4 was mixed, with revenue effectively in line with RBCe/ consensus, while adj. EBITDA was slightly short of consensus when excluding unusuals. FY25 revenue and adj. EBITDA guidance is effectively in line with consensus, though growth and margin expansion are likely to be back-end loaded (Q1 guidance light), as it will take time for the CRE market to improve and the ARGUS Intelligence migration cycle to commence,” he wrote.