Cautious Hold Rating for Dye & Durham Amid Financial Uncertainties and High Leverage

In a report released yesterday, Thanos Moschopoulos from BMO Capital downgraded Dye & Durham to a Hold, with a price target of C$4.50.

Thanos Moschopoulos has given his Hold rating due to a combination of factors impacting Dye & Durham’s current financial situation. The company is experiencing delays in filing its financial statements, which adds uncertainty to its financial outlook. Preliminary results for FY2025 and Q1/26 show revenue and EBITDA figures falling short of expectations, suggesting challenges in meeting financial targets.
Additionally, the company’s high leverage ratio and the need for further stabilization efforts contribute to a less favorable risk/reward profile. While there is potential for value creation through asset sales or a business turnaround, the ongoing uncertainties and potential for near-term EBITDA declines prompt a cautious approach. Consequently, Moschopoulos has adjusted the target price to reflect these concerns.