In a report released yesterday, John Gibson CFA from BMO Capital maintained a Hold rating on Trican Well Service, with a price target of C$6.00.
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John Gibson CFA has given his Hold rating due to a combination of factors related to Trican Well Service’s current market position and future prospects. The company has delivered strong financial results for Q2/25, surpassing expectations with an adjusted EBITDAS of $47 million, which is higher than both the internal estimate and market consensus. Despite this positive performance, the valuation of Trican Well Service remains a concern, as it trades at a higher EV/EBITDA multiple compared to its peers.
While the company is expected to experience a slowdown in activity in the latter half of 2025, it is strategically positioned for future growth in natural gas-directed work. Additionally, Trican Well Service has demonstrated a commitment to returning value to shareholders through share repurchases and dividend increases. However, the current valuation limits the potential for significant stock price appreciation, leading to the Hold rating. The pending acquisition of Iron Horse Energy Services is anticipated to further enhance earnings, yet the overall recommendation remains cautious due to valuation considerations.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TOLWF in relation to earlier this year.