Canaccord Genuity Keeps Their Hold Rating on ENTREC Corporation

By Carrie Williams

The Services sector company, ENTREC Corporation (TSX: ENT), has received a rating update from a Wall Street analyst today. The company received a Hold rating from Canaccord Genuity’s analyst John Bereznicki.

Bereznicki commented:

“We are adjusting our estimates to incorporate higher US sales and margin assumptions (Figure 1) and increased debt expectations. To reflect ENTREC’s growing US exposure, we are also raising our 2019E EV/EBITDA target multiple from 6.5x (from 6.0x) while maintaining our C$0.25 target price. While we believe ENTREC is prudently managing its cost structure and seeking more attractive markets, we continue to view the company as highly levered and are reiterating our HOLD recommendation. ESSENTIAL ENERGY SERVICES (ESN: TSX | HOLD): Essential reported Q4/17 EBITDA of C$1.2 million that fell well short of our C$6.8 million expectation due primarily to margin pressure within the company’s Coil Well Service (ECWS) segment. Essential reports this was partially driven by input cost inflation for labour and fuel along with certain non- recurring R&M costs (that we estimate totaled ~$3 million in Q4/17).”

According to TipRanks.com, Bereznicki is a 4-star analyst with an average return of 10.7% and a 51.3% success rate. Bereznicki covers the Basic Materials sector, focusing on stocks such as Essential Energy Services Ltd, Forbes Energy Services Ltd, and Trinidad Drilling.

ENTREC Corporation has an analyst consensus of Hold.

The company has a one-year high of C$0.25 and a one-year low of C$0.15. Currently, ENTREC Corporation has an average volume of 49.1K.

Entrec Corp. engages in the provision of heavy haul and crane solutions. The firm offers their services to the oil and natural gas, construction, petrochemical, mining, and power generation industries. Its crane fleet comprises of rough-terrain cranes, mobile cranes, crawlers, carry decks, and picker trucks.

The company’s shares closed on Tuesday at C$0.20.