Mattr has price target chopped at RBC

Following the company’s first quarter results, RBC Dominion Securities analyst Arthur Nagorny has cut his price target on Mattr (Mattr Stock Quote, Chart, News, Analysts, Financials TSX:MATR).

On May 14, Mattr reported its Q1, 2025 results. The company posted Adjusted EBITDA of $46.5-million on revenue of $320.1-million, a topline that was up 52%, year-over-year.

“The first quarter of 2025 saw Mattr leverage its unique product portfolio to deliver strong business performance despite geopolitically driven uncertainty across many end markets,” CEO Mike Reeves said. “With customer adoption of recently released technologies accelerating, robust performance from AmerCable in its first quarter as a Mattr brand, and newly established manufacturing facilities operating at improved levels of efficiency, Q1 saw meaningful year-over-year expansion of both revenue and Adjusted EBITDA generation within both operating segments.”

The analyst said the “T” word has cast a pall over Mattr, at least in the near future.

“Looking ahead, the remaining Shawflex facility transition is on track to be complete by mid-year, and we continue to expect Mattr to benefit from lower MEO costs ($5-7-million of final costs expected in Q2 vs. $2.7-million in Q1 and $18-million in 2024) and efficiencies as the new facilities ramp up (i.e., under-absorption likely to be minimal post-H1),” Nagorny wrote. “With that said, we expect tariff-related disruptions to outweigh these benefits over the nearterm. Although Mattr’s own USMCA-compliant products are not directly impacted by tariffs (though we note the company currently sources some raw material from other countries that are subject to tariffs), the resulting uncertain macro outlook has impacted customer confidence/demand. As it relates to Flexpipe, management now expects North American onshore well completions to decline 15 per cent year-over-year in 2025 (vs. down 10 per cent prev.), driven in part by the lower oil price backdrop and customer capex guidance cuts, while recent activity declines from auto OEMs/industrial customers are likely to impact DSG-Canusa/Shawflex (relatively minimal impact experienced in Xerxes/AmerCable thus far).”

A reported by The Globe and Mail, Nagorny May 22 maintained his “Outpeform” rating but cut his price target on Mattr from $14.00 to $12.00.