In a report released yesterday, John Gibson CFA from BMO Capital downgraded Superior Plus to a Hold, with a price target of C$8.00.
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John Gibson CFA has given his Hold rating due to a combination of factors tied to Superior Plus’s evolving outlook and capital allocation. While fourth-quarter results generally met expectations with modest EBITDA growth, segment performance was mixed, as strength in U.S. propane was offset by weaker results at Certarus driven by softer wellsite pricing.
More importantly, management materially lowered its medium-term EBITDA and free cash flow growth targets, reflecting weaker CNG pricing and certain one-time propane costs, and also scaled back its share repurchase plans. With key strategic initiatives now pushed out further and fewer near-term catalysts, Gibson reduced his target price and concluded that the risk‑reward profile is now balanced, supporting a Market Perform (Hold) stance.