National Bank keeps CCL Industries at Outperform on Q2 estimates By Investing.com

On Tuesday, National Bank Financial maintained its positive outlook on shares of CCL Industries Inc. (CCL/B:CN) (OTC: CCDBF), with an Outperform rating and a steady price target of C$84.00.

The firm’s analysis suggests an adjustment to the second-quarter estimates, anticipating a revenue increase to C$1,763 million from the prior C$1,734 million, and an adjusted EBITDA of C$360 million, up from the previous C$345 million. The adjusted earnings per share (EPS) are also expected to rise to C$1.02 from C$0.96.

The revision comes as a reflection of the continued momentum across the company’s various segments, aligning National Bank Financial’s expectations more closely with those of other analysts.

CCL Industries has been actively participating in its latest Normal Course Issuer Bid (NCIB), which began on May 25, 2024, and will run until May 24, 2025. During this period, the company has repurchased 566,000 shares at an average price of C$71.85, totaling approximately C$41 million in spend.

The NCIB program permits CCL Industries to buy back up to 14.75 million shares, representing 9.9% of its float. National Bank Financial cites strong company fundamentals as a driving force behind CCL’s performance, with a diversified customer base and robust margins contributing to the stock’s defensive profile.

The firm’s price target is derived from an average of the 2024 estimated Discounted Cash Flow (DCF) and the 2025 estimated Net Asset Value (NAV), with implied Enterprise Value/EBITDA multiples of 11.0 times for 2024 and 10.3 times for 2025. These calculations underscore National Bank Financial’s continued confidence in the upside potential for CCL Industries shares.

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