On March 15th, CIBC analyst Scott Fromson raised Intertape Polymer’s (TSX:ITP) stock price target to $35.50 from $30 and kept an “Outperform” rating on the stock. ITP stock’s previous close was at $28.80 which shows it was trading at a discount of 23.26% to CIBC estimates.
Later in the day National Bank analyst Zachary Evershed raised the price target on Intertape Polymer to $34 from $30 while Scotiabank analyst Michael Doumet raised the price target to $36 from $33 and both maintained an “outperform” rating on the stock.
ITP has been valued at a market cap of $1.72 billion and an enterprise value of $2.19 billion stating that the company has a net debt of $0.47 billion.
Q4 Results of Intertape Polymer
A Canada based company Intertape Polymer released its Q4 results last week and recorded a revenue of $344.1 million, an increase of 18% from the comparative period in the last year.
Cash flows from operating activities increased from $15.3 million to $88.6 million primarily due to an increase in gross profit, partially offset by an increase in cash taxes paid and a decrease in cash flows from working capital.
The company has planned to install a new water-activated tape line within the existing footprint that will be operational in 2022 and is planning to expand production capacity in other high growth areas. These projects should provide shorter-term investment horizons and higher returns to the company.
The capital expenditure level for 2021 is expected to be approximately $100 million, of which $70 million is for strategic projects in high growth areas, $10 million is for digital transformation and cost savings initiatives and $20 million is for regular maintenance.
Analysts covering ITP stock have an average 12- month price target of $24.50. Out of six analysts, all have given a “buy” rating to the stock. ITP revenues are expected to increase to $1.32 billion in 2021 and earnings are forecasted to increase to $1.77 per share.