Dye & Durham (TSE:DND) may not be a familiar name, but for those in the legal services field who use its services routinely, it’s much more well-known. And it’s just made a big hit with investors, up over 11% in Monday afternoon’s trading thanks to reports of a new strategic review about to launch.
Dye & Durham is Looking to Tackle Its Debt Problem
Dye & Durham has, reports note, a bit of a problem. That problem is debt, and that’s just what the strategic review is out to correct. Thus, Dye & Durham is conducting a review of its “non-core assets” to see just what it has and just what it can comfortably afford to get rid of to help reduce its debt load. A responsible stance, sure enough, and one echoed by many households worldwide. Possibly on the list for Dye & Durham to divest is its financial services operations, and the company is working carefully to see what can be safely dropped from the roster.
While Dye & Durham is doing what it can to ensure that the process is “…comprehensive, diligent, and maximizes value,” it wanted to particularly point out that it also may, ultimately, be futile. It made clear that, even once the process is complete, nothing may actually come of it. Nothing may ultimately be sold, which would keep the company at status quo. Dye & Durham was quick to point out that its business performance was “strong” overall, as was its overall liquidity. However, it was initiating the review mostly at its shareholders’ insistence.
Is Dye & Durham a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DND stock based on four Buys assigned in the past three months, as indicated by the graphic below. After a 12.19% loss in its share price over the past year, the average DND price target of C$20.75 per share implies 70.78% upside potential.
