Mattr wins price target raise at RBC

Arthur Nagorny of RBC Dominion Securities raised his price target on Mattr (Mattr Stock Quote, Chart, News, Analysts, Financials TSX:MATR) to $10.00 from $9.00 while maintaining an “Outperform” rating, saying the company is “moving in the right direction” despite near-term tariff headwinds.

As reported by the Globe and Mail, in a March 17 report, Nagorny said Mattr’s fourth-quarter 2025 results came in ahead of expectations, while initial 2026 guidance calling for flat to modestly lower revenue and Adjusted EBITDA appears conservative.

“Overall, we believe the guide is likely a conservative starting point given the various green shoots across the business,” he said, pointing to improving oil prices and supportive commodity markets that could lift North American well completion activity into 2026.

Mattr is a Toronto-based global materials technology company focused on infrastructure and industrial markets.

Nagorny said tariff-related pressures, particularly in the Canadian industrial segment, are expected to weigh on results in the first half of 2026, though the company is taking steps to mitigate the impact, including redirecting Shawflex sales toward Canadian and U.S. utility markets.

He added that Mattr continues to execute on operational initiatives, including facility transitions and cost improvements, with growth expected from its Xerxes and Flexpipe businesses and improved profitability at DSG-Canusa. The absence of roughly $10-million in prior modernization and restructuring costs should also support year-over-year comparisons.

Nagorny highlighted the company’s AmerCable business as a key contributor in the quarter. The unit, acquired from Nexans USA for US$280-million in late 2024, exceeded expectations, benefiting from higher copper prices and operational efficiencies.

“The acquisition of AmerCable checks many of the right boxes,” he said, noting it expands Mattr’s exposure to the U.S. wire and cable market, adds medium-voltage capabilities and is expected to be more than 40% accretive to earnings per share.

He added the deal was completed at an attractive valuation of roughly five times EV/EBITDA, with potential for additional revenue synergies as the business scales and capacity expands.

Nagorny said Mattr has also made significant progress repositioning its business away from oil and gas toward more stable industrial end markets, following the divestiture of legacy pipeline assets, including the sale of Thermotite in 2025.

“Despite this repositioning, Mattr’s valuation is meaningfully below peers,” he said. “As the company executes on its organic growth initiatives, we see potential for the valuation discount to close over time.”

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