Following the company’s fourth quarter results, Beacon Securities analyst Kirk Wilson has raised his price target on Polaris Renewable Energy (Polaris Renewable Energy Stock Quote, Chart, News, Analysts, Financials TSX:PIF).
On February 20, Polaris reported its Q4 and fiscal 2024 results. In the fourth quarter, the company posted Adjusted EBITDA of $13.6-million on revenue of $18.8-million.
“In 2024, we are proud to report that despite ongoing inflationary pressures, we successfully managed to reduce our combined direct costs and General & Administrative expenses slightly compared to 2023,” CEO Marc Murnaghan said. “This reflects our commitment to operational efficiency and prudent financial management. Additionally, we strengthened our capital position by completing a $175 million in Bond issue and signing an Equity Capital Contribution agreement for Punta Lima Wind Farm in Puerto Rico. Looking ahead, we are excited to be on track to finalize the acquisition of the wind farm. The combined effect of the Bond issuance and the wind farm acquisition sets us up to accelerate our growth initiatives and drive long-term value.”
Wilson says things are looking up for Polaris.
“There were some positive points in the Q4 results as PIF’s two largest asset regions (Nicaragua and Peru) had solid operating results,” he wrote. “With the Puerto Rico acquisition to close soon and the hydro assets off to a good start in 2025, we look for revenue/EBITDA to move up materially this year. With battery storage projects likely in DR and PR, and with the strong potential for additional M&A, we believe PIF has a bright future.”
In a research update to clients February 21, the analyst maintained his “Buy” rating on PIF and raised his price target on the stock from $21.50 to $22.00, implying a return of 90% at the time of publication.
Wilson thinks PIF will post EBITDA of $60.0-million on revenue of $82.3-million in fiscal 2025. He expects those numbers will improve to EBITDA of $64.0-million on a topline of $87.3-million in fiscal 2026.
About The Author /
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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