Zedcor: Buy, Sell or Hold?

Paradigm Capital analyst Alexandra Ricci says Zedcor’s (Zedcor Stock Quote, Chart, News, Analysts, Financials TSX:ZDC) expanded credit facility gives the company more flexibility to fund fleet growth without issuing equity.

In an Oct. 14 update, Ricci maintained her “Buy” rating and $7.60 target on Zedcor.

Zedcor announced that National Bank expanded its committed credit facility to $100-million from $75-million, with an additional $50-million uncommitted accordion.

That brings total potential borrowing capacity to $150-million.

Ricci said the expansion is positive because it supports fleet growth while avoiding equity financing.

Zedcor had total liquidity of $29.7-million at the end of Q2 2026, including about $2.7-million of cash, and net debt to EBITDA of about 1.6 times.

Pro forma liquidity is about $55-million, excluding Q3 activity, with $52-million of undrawn capacity following the announcement.

If the additional $50-million accordion is exercised, total liquidity would rise to about $105-million.

Ricci noted that production is running at about 45 to 50 towers per week, with capacity to scale to roughly 300 per month following the Houston consolidation, which has helped address supply-chain bottlenecks.

Zedcor operates 19 branches and is targeting about 26 over the next 12 months, with a longer-term goal of 42 branches.

Ricci said the expanded facility positions Zedcor to fund fleet expansion into 2027, with flexibility to accelerate production as demand grows.

Shares are up about 7% over the past month but remain down about 21% year-to-date.

Ricci argues that the current valuation remains an attractive entry point, with growth expected to accelerate on continued U.S. expansion and strength in Canada.

Zedcor trades at 10.5 times Ricci’s 2027 EV/EBITDA estimate, down from about 14 times last year.

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