Andlauer Healthcare Group has price target trimmed at TD

Ahead of the company’s first quarter results, TD Cowen analyst Tim James has cut his price target on Andlauer Healthcare Group (Andlauer Healthcare Group Stock Quote, Chart, News, Analysts, Financials TSX:AND).

As reported by the Globe and Mail James April 15 maintained his “Buy” rating on AND while cutting his price target from $53.00 to $51.00.

“We forecast revenue of $162 million (flat year-over-year; cons: $167-million) and EBITDA of $39.5 million (flat year-over-year; cons: $42.2 million),” James wrote. “Canadian ground transportation growth to offset decline in fuel surcharges and U.S. TL revenue (volume and pricing headwinds). Worst-case scenario indicates $39 should be bottom and $41 in 12 months, assuming worst-case 2025/2026 EBITDA declines (highly unlikely, in our view). “For investors not prepared to stomach more volatility and potential short-term pressure, we believe AND should hold-up best.”

On May 1, after the market close, AND will report its Q1, 2025 results.

On February 26, AND posted its Q4 and fiscal 2024 results. In the fourth quarter, the company achived EBITDA of $43.6-million on revenue of $168.3-million, down from $169.1-million year-over-year.

“Our results for the quarter and year reflect continued growth in our Canadian specialized transportation network, the improved performance of our logistics and distribution product line in the second half of the year and revenue growth in the fourth quarter for our packaging solutions. This growth was offset by the continued headwinds in our US-based truckload businesses,” CEO Michael Andlauer said. “Our low debt levels, combined with the strong cash generation of our business provides us with financial flexibility to pursue value-enhancing opportunities. Our share buybacks have been an attractive, accretive path for capital allocation, and we continue to evaluate opportunities to allocate capital towards extending our platform to build further value for our customers and shareholders.”