This analyst just raised his price target on Mattr

National Bank Financial analyst Nathan Po says Mattr’s (Mattr Stock Quote, Chart, News, Analysts, Financials TSX:MATR) stronger-than-expected preliminary Q2 results show improving execution and stronger demand across Wire & Cable and Xerxes.

As reported by the Globe and Mail, Po maintained his “Outperform” rating on Mattr and raised his target to $18.00 from $14.50. The average target is $14.56.

Mattr said it expects Q2 revenue of $390-million to $400-million, up 21% to 25% year-over-year and ahead of consensus at $335-million. Adjusted EBITDA is expected to be $60-million to $65-million, above consensus at $43.1-million.

“Management attributed the upside primarily to stronger order capture across the Wire & Cable business and increased order fulfillment in Xerxes, as internal efficiency initiatives continue to prove out,” Po said.

Po raised his Q2 organic growth forecast for Connection Technologies to 32% from negative 2%, while increasing his fiscal 2026 organic growth forecast for the segment to 8.6% from flat. He also raised his Q2 organic growth forecast for Composite Technologies to 13% from 5%, and his fiscal 2026 growth forecast to 13.4% from 7.8%.

Given the size of the Q2 beat, Po now expects 2026 Adjusted EBITDA of $193.3-million and expects management to raise its $170-million guidance when it reports Q2 results.

“Beyond the preliminary beat, the results provide further evidence that recent capacity investments and efficiency initiatives are translating into stronger revenue and profitability,” Po said.

The analyst said Mattr is benefiting from electrification, mining and data centre demand in Connection Technologies, while Composite Technologies continues to execute well.

Po also raised the valuation multiples in his sum-of-the-parts model to reflect better execution and stronger peer multiples. He now uses eight times 2027 Adjusted EBITDA for Connection Technologies, up from 7.5 times, and 6.5 times for Composite Technologies, up from 6.0 times.

“With exposure to attractive thematic tailwinds, including electrification, grid investment, energy infrastructure and data centre demand, coupled with continuing success on internal initiatives, we reiterate our Outperform rating,” Po said.

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