On Tuesday, BMO Capital Markets adjusted its outlook for Chemtrade Logistics Income Fund (CHE-U:CN) (OTC: CGIFF) shares, increasing the price target to C$12.00, up from the previous C$11.00. The firm sustained its Outperform rating on the stock.
The adjustment comes as Chemtrade Logistics continues to display a strong valuation, even after recent gains in its share price. The company is also on the radar for potential index inclusion, although its aggressive share buyback strategy could extend the timeline for this achievement.
Chemtrade has recently completed measures concerning its 2025 convertible debentures, fully retiring this debt. Moreover, the company has been actively repurchasing shares under its Normal Course Issuer Bid (NCIB), at an average rate of approximately 71,000 shares per day.
There is an anticipation of a slight impact on Chemtrade's third-quarter earnings due to rail strike disruptions. Despite this, the overall outlook for the company remains positive as reflected in the revised price target. The firm's actions and current financial strategies have prompted BMO Capital Markets to maintain a favorable view of Chemtrade's stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.